Question

Rodriguez Company pays $358,020 for real estate with land, land improvements, and a building. Land is appraised at $211,500; land improvements are appraised at $94,000; and a building is appraised at $164,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. ok Complete this question by entering your answers in the tabs below. nt ant Required 1 Required 2 Allocate the total cost among the three assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Percent of Total Appraised Value -Apportioned Cost x Total Cost of Appraised Value Acquisition Land Land improvements Building 0.00 $ 0 % $ 0 Totals Required 2 Next > Oro

Answer 1

1
	Appraised Value	Percent of Total Appraised Value	x Total Cost of Acquisition	Apportioned Cost
Land	211,500	45%	358020	161,109.00
Land improvements	94,000	20%	358020	71,604.00
Building	164,500	35%	358020	125,307.00
Totals	470,000	100%		358,020.00
2
Transaction	General Journal	Debit	Credit
1	Land	161,109.00
	Land improvements	71,604.00
	Building	125,307.00
	Cash		358,020.00