Concept #1: Basket (Lump-sum) Purchases

Practice: The Cutting Corner paid $640,000 for a basket purchase of land, building, and equipment. At the time of the purchase, the land had a market value of $224,000, the building’s market value was $455,000 and the equipment’s market value was $21,000. If the business put $240,000 as a down payment while signing a note payable for the remainder of the $640,000 purchase price, what would be the journal entry to record the basket purchase?