The Augusta Health Company purchased land, buildings and equipment for $2,400,000. The land has been appraised at $915,000, the buildings at $1,125,000 and the equipment at $510,000. The equipment account will be debited for:

Question

Quizplus · Accepted Answer

The total appraised value of the land and buildings is $2,040,000 ($915,000 + $1,125,000). To determine the value of the equipment, you need to subtract this total from the total purchase price: $2,400,000 - $2,040,000 = $360,000. Therefore, the equipment account will be debited for $360,000.

The Augusta Health Company Purchased Land, Buildings and Equipment for $2,400,000