Problem III: (16 pts) On June 18, 2023, Lofi Corp. purchased a building and land...
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Problem III: (16 pts) On June 18, 2023, Lofi Corp. purchased a building and land for $1,000,000. Lofi paid $400,000 down in cash and financed the remaining $600,000 by issuing a 1 year, 9% term note. The Company has determined that the building and land have fair market values of $715,000 and $385,000, respectively. Required: Prepare the journal entry Lofi should make to record the acquisition of the two assets
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Problem III: (16 pts) On June 18, 2023, Lofi Corp. purchased a building and land for $1,000,000. Lofi paid $400,000 down in cash and financed the remaining $600,000 by issuing a 1 year, 9% term note. The Company has determined that the building and land have fair market values of $715,000 and $385,000, respectively. Required: Prepare the journal entry Lofi should make to record the acquisition of the two assets 