On August 1, 2021, Mark Leamington Engineering paid $ 1,000,000 in a lump-sum purchase of land, building, and equipment. The payment consisted of $ 200,000 cash and a note payable for the balance. An appraisal revealed the following fair values at the time of the purchase:
Land $ 500,000
Building 450,000
Equipment 250,000
Instructions
Prepare the necessary journal entry to record this lump-sum purchase (round all percentage calculations to two decimal places).

Question

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The Answer of On August 1, 2021, Mark Leamington Engineering paid $ 1,000,000 in a lump-sum purchase of land, building, and equipment. The payment consisted of $ 200,000 cash and a note payable for the balance. An appraisal revealed the following fair values at the time of the purchase:
Land $ 500,000
Building 450,000
Equipment 250,000
Instructions
Prepare the necessary journal entry to record this lump-sum purchase (round all percentage calculations to two decimal places).

On August 1, 2021, Mark Leamington Engineering Paid $ 1,000,000