Journal entries, capital assets. For the following transactions, prepare the entries that would be recorded in the general fixed assets account group for the city of Evert.
a. The city purchased property costing $1,300,000, with three-fourths of the cost allocated to a building.
b. A mansion belonging to the great-granddaughter of the city’s founder was donated to the city. The land cost the original owner $600, and the house was built for an additional $50,000. At the time of donation, the property had an estimated fair value of $550,000, of which $330,000 was allocable to the land. The property was accepted and is to be used as a park and a museum.
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