A company paid $120,000, plus a 8% commission and $6,500 in closing costs for a property. The property included land appraised at $82,500, land improvements appraised at $33,000, and a building appraised at $49,500. What should be the allocation of this property's costs in the company's accounting records? a. Land $60,000; Land Improvements, $24,000; Building, $36,000 b. Land $24,000; Land Improvements, $36,000; Building, $60,000 c. Land $68,050; Land Improvements, $27,220; Building, $40,830 d. Land $82,500; Land Improvements; $33,000; Building; $49,500 e. Land $27,220; Land Improvements, $40,830; Building, $68,050

A company paid $120,000, plus a 8% commission and $6,500 in closing costs for a property. The property included land appraised at $82,500, land improvements appraised at $33,000, and a building appraised at $49,500. What should be the allocation of this property's costs in the company's accounting records? a. Land $60,000; Land Improvements, $24,000; Building, $36,000 b. Land $24,000; Land Improvements, $36,000; Building, $60,000 c. Land $68,050; Land Improvements, $27,220; Building, $40,830 d. Land $82,500; Land Improvements; $33,000; Building; $49,500 e. Land $27,220; Land Improvements, $40,830; Building, $68,050

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3RE: Utica Corporation paid 360,000 to purchase land and a building. An appraisal showed that the land is...

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A company paid $150,000, plus a 7% commission and $5,000 in closing costs for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. What should be the allocation of this property's costs in the company's accounting records? A. Land $75,000; Land Improvements, $30,000; Building, $45,000. B. Land $75,000; Land Improvements, $30,800; Building, $46,200. C. Land $82,750; Land Improvements, $33,100; Building, $49,650. D. Land $80,250; Land Improvements, $32,100; Building, $48,150. E. Land $77,500; Land Improvements; $31,000; Building; $46,500.
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Sh7
General Accounting
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