Question

Rodriguez Company pays $352,755 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. Required 1 Required 2 Allocate the total cost among the three assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Appraised d Value Percent of Total x Total Cost of Appraised Value Acquisition - Apportioned Cost Land Land improvements Building Totals 01 $ 0.00

Answer 1

solution 1) Allocation of total cost Appraised Value Percent of Total Appraised Value x Total Cost of Acquisition Apportioned Cost Building Land 352,755 225000 45% 158,739.75 75000 15% 352,755 52,913.25 Land Improvements 141.102.00 352,755.00 200.000 40% 352,755 Totals 500000 100% 2) General Journal Building Land Debit Credit 158,739.75 52,913.25 Land Improvements Cash 141,102.00 352,755.00