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A company paid $150,000, plus a 6% commission, and $4,000 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 $84,100; Land Improvements, $30,000; Building, $48,900 B. Land $75,000; Land Improvements, $30,800; Building, $46,200 C. Land $81,500; Land Improvements, $32,600; Building, $48,900 D. Land $82,700; Land Improvements, $32,600; Building, $47,700

A company paid $150,000, plus a 6% commission, and $4,000 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 $84,100; Land Improvements, $30,000; Building, $48,900 B. Land $75,000; Land Improvements, $30,800; Building, $46,200 C. Land $81,500; Land Improvements, $32,600; Building, $48,900 D. Land $82,700; Land Improvements, $32,600; Building, $47,700

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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28. A company paid $150,000, plus a 6% commission, and $4,000 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 $84,100; Land Improvements, $30,000; Building, $48,900
B. Land $75,000; Land Improvements, $30,800; Building, $46,200
C. Land $81,500; Land Improvements, $32,600; Building, $48,900
D. Land $82,700; Land Improvements, $32,600; Building, $47,700

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