Berry purchased a building (including land) for $711,000. Berry plans to use the building. The land’s value on the purchase date was $159,000, and the building’s value was $552,000. Berry gave a cash down payment of 20% of the total purchase cost and signed a promissory note for the remainder. The company estimates the building will have a useful life of 25 years and a salvage value of $81,000. What is the journal entry for this?
Berry purchased a building (including land) for $711,000. Berry plans to use the building. The land’s value on the purchase date was $159,000, and the building’s value was $552,000. Berry gave a cash down payment of 20% of the total purchase cost and signed a promissory note for the remainder. The company estimates the building will have a useful life of 25 years and a salvage value of $81,000. What is the journal entry for this?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 7PB: Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete...
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Berry purchased a building (including land) for $711,000. Berry plans to use the building. The land’s value on the purchase date was $159,000, and the building’s value was $552,000. Berry gave a cash down payment of 20% of the total purchase cost and signed a promissory note for the remainder. The company estimates the building will have a useful life of 25 years and a salvage value of $81,000.
What is the
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