Kolonial Township acquired a building and the 3 acres of land on which it is...
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Kolonial Township acquired a building and the 3 acres of land on which it is located. The total purchase price was $2,500,000. For valuation purposes, the company contacted three local commercial real estate agents, who gave the following valuation estimates: Land Building M. Mulhan $900,000 $2,100,000 H. Ivan $300,000 $2,700,000 T. Grasso $600,000 $2,400,000 If Kolonial Township used the valuation made by H. Ivan, and assuming it paid cash for the land and building, what journal entry would Kolonial Township make to record the purchase? A) Land 600,000 Building 2,400,000 Cash 3,000,000 A) Land 750,000 Building 1,750,000 Cash 2,500,000 B) Land 500,000 Building 2,000,000 Cash 2,500,000 C) Land 300,000 Building 2,700,000 Cash 3,000,000 D) Land 250,000 Building 2,250,000 Cash 2,500,000 E) Land 300,000 Building 2,750,000 Cash 2,500,000 Gain on Purchase of Assets 500,000
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