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In January 2019, Cordova Company entered into a contract to acquire a new machine for its factory. The machine, which has a cash price of $280,000, was paid for as follows: Required: 1. Determine the cost of the machine. What principle guides the determination of the cost of the muchine? 2. Prepare the joumal entry to record the acquisition of the machine. 3. Next Level How would your answer change, if at all if the $280,000 cash price wore not available? 1. What principle guides the determination of the cost of the machine? Select the statement that best supports the entry to record the cost of the machine. Assets acquired on a deferred-payment basis are recorded at the fair value of the liablity. If the fair value of the asset received is more clearly evident than the fair value of the asset surrendered, it can be used to measure the cost of the asset acquired. When more than one asset is acquired for a single lump-sum purchase price, the purchase price is allocated to the individual assets based on their relative fair values. Assets acquired through the exchange of stock are recorded at the fair value of the stock. 2. Prepare the joumal entry to record the acquisition of the machine on January t. 3. How would your answer change, if at all, if the $280,000 cash price were not available? Seloct the statement that supports how the entry to record the acquisition of the machine would change if the $280,000 cash price were not avalable. The cost of the machine is the note payable plus the preferred stock issued less cash paid. The cost of the machine is the discounted note payable plus the proterred stock issued plus the cash paid. The cost of the machine is the book value to the seller. The cost of the machine is the note payable plus the preterred stock

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