Question

Rodriguez Company pays $394,875 for real estate with land, land improvements, and a bulding, Land is appraised at $265.000;land Improvements are appraised at $53,000, and a building is appraised at $212,000. 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 Required Allocate the total cost among the three assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Percent of Appraised Total x Total Value Appraised Cost of Apportioned Value Acquisition Cost Land $ 265,000 50% * 394,875 Land 10% 394,875 Improvements Building 212.000 40% 394.875 Totals $1530.000 100% $ 0.00 53,000 Required Required 2 >

Answer 1

	Appraised value	percent of total appraised value	xtotal cost of acquisition	= apporitioned cost
Land	265000	50%	x 394875	197437.5
land improvements	53000	10%	x 394875	39487.5
Building	212000	40%	x 394875	157950
Totals	530000	100%		394875
Journal entries
Particulars			Debit	Credit
Land			197437.5
land improvement			39487.5
building			157950
Cash				394875
(to record purchase)

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