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Solve the acquisition cost of the machine

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Reference no: EM132503199

TXA Ltd acquired a Machine from Blue Ltd for the following consideration: Cash $70 000, Land in the books of TXA Ltd the land is recorded at its cost of $650 000. It has a fair value of $450 000.

  • TXA Ltd also agrees to assume the liability of Blue Ltd bank loan of $89 000 as part of the Machine acquisition.

required

Question (a) Calculate the acquisition cost of the Machine?

Question (b) Provide the journal entries that would appear in TXA Ltd's books to account for the acquisition of the Machine

Reference no: EM132503199

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