Question

Rodriguez Company pays $358,020 for real estate with land, land improvements, and a building, Land is appraised at $225.000, land improvements are appraised at $75,000, and a building is appraised at $200,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. cook Required 1 Required 2 Allocate the total cost among the three assets. (Round your "Apportioned Cost answers to 2 decimal places.) References Appraised Percent of Total praised Value Total Cost of cousition - Apportioned Cost Value Land Land improvements Building Totals Required 2 >

Answer 1

a) Allocation

	Appraised value	Percent of total appraised value	* Total cost of acquisition	= Apportioned cost
Land	225000	45%	358020	161109
Land improvement	75000	15%	358020	53703
Building	200000	40%	358020	143208
Total	500000	100%		358020

Journal entry

Date	account and explanation	Debit	Credit
	Land	161109
	Land improvement	53703
	Building	143208
	cash		358020
	(To record lump sum purchase)