Baldini's Restaurant purchased a new building with the surrounding land.The price paid was $1,200,000,including the commission charged on the sale.An appraisal of the land and building at the time of purchase indicated that the market value of the land was $1,000,000 and the market value of the building was $500,000.What amounts would be recorded for the purchase of the two assets?
A) Land $800,000, Building $400,000
B) Land $1,000,000, Building $500,000
C) Land $1,000,000, Building $200,000
D) Land $700,000, Building $500,000

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The Answer of Baldini's Restaurant purchased a new building with the surrounding land.The price paid was $1,200,000,including the commission charged on the sale.An appraisal of the land and building at the time of purchase indicated that the market value of the land was $1,000,000 and the market value of the building was $500,000.What amounts would be recorded for the purchase of the two assets?
A) Land $800,000, Building $400,000
B) Land $1,000,000, Building $500,000
C) Land $1,000,000, Building $200,000
D) Land $700,000, Building $500,000

Baldini's Restaurant Purchased a New Building with the Surrounding Land