Tamock Company purchased a plant from one of its suppliers. The $950,000 purchase price included the land, building, and factory machinery. Tamock also paid $6,000 in legal fees to negotiate the purchase of the plant. An appraisal showed the following values for the items purchased:
Property
Assessed Value
Percentage of Fair Value
Account Value
Land..
$126,000
Building.
456,000
Machinery
318,000
Total..
900,000
100%
Using the assessed value as a guide, allocate the total purchase price of the plant to the land, building, and machinery accounts in Tamock Company's Records.
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