Question

Kindly please solve this thank you
Land Land Land Building 2 Building 3 Improvements 1 Improvements 2 Purchase Price Demolition Land grading New building (Construction cost) New improvements Totals

Answer 1

Apportioned Cost 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Total Total Cost of Allocation of Purchase Price Appraised Value Appraised Value Acquisition Land $1,800,000 60.00% x $2,650,000 = Building 2 810,000 27.00% x 2,650,000 = Land Improvements 1 390.000 13.00% x 2,650,000 = Totals $3,000,000 100.00% $1,590,000 715,500 344.500 $2,650,000 Land Building 3 Building 2 $715,500 Land Improvements 1 $344,500 Land Improvements 2 $1,590,000 343,400 189,400 Purchase Price Demolition Land grading New building (Construction cost) New improvements cost Totals 0_ 2,282,000 $2,122,800 $715,500 $2,282,000 $344,500 178,000 $178,000 Explanation: Percent of Total Appraised Value Land ($1,800,000 / $3,000,000) = 60.00% Building 2 ($810,000 / $3,000,000) = 27.00% Land Improvements 1 ($390,000 / $3,000,000) = 13.00%