Bell Incorporated (BI) purchased a group of assets together from one of their competitors whose owner had recently decided to retire and stop operations. BI paid $ 500,000 for land, building,...

Bell Incorporated (BI) purchased a group of assets together from one of their competitors whose owner had recently decided to retire and stop operations. BI paid $ 500,000 for land, building, equipment, and a patent. Independent appraisals had been completed on all assets prior to the sale. These appraisals indicated the following fair values for the assets: Land …………….$ 250,000; Building …………..$ 225,000; Equipment…………. $ 75,000, And patent ………….$ 50,000. Required: Give the entry to record the purchase; show computations.View Solution:

Bell Incorporated BI purchased a group of assets together from