Watson Company purchased assets of Holmes Ltd. at auction for $1,300,000. An independent appraisal of the fair value of the assets acquired is listed below:
Required:
Prepare the journal entry to record the purchase of the assets.
$$\begin{array} { l r }
\text { Land } & \$ 214,500 \
\text { Building } & 357,500 \
\text { Equipment } & 572,000 \
\text { Inventories } & 286,000
\end{array}$$

Question

Watson Company purchased assets of Holmes Ltd. at auction for $1,300,000. An independent appraisal of the fair value of the assets acquired is listed below:
Required:
Prepare the journal entry to record the purchase of the assets.
 $$\begin{array} { l r } 
\text { Land } & \$ 214,500 \
\text { Building } & 357,500 \
\text { Equipment } & 572,000 \
\text { Inventories } & 286,000
\end{array}$$

Quizplus · Accepted Answer

The Answer of Watson Company purchased assets of Holmes Ltd. at auction for $1,300,000. An independent appraisal of the fair value of the assets acquired is listed below:
Required:
Prepare the journal entry to record the purchase of the assets.
 $$\begin{array} { l r } 
\text { Land } & \$ 214,500 \
\text { Building } & 357,500 \
\text { Equipment } & 572,000 \
\text { Inventories } & 286,000
\end{array}$$

Watson Company Purchased Assets of Holmes Ltd