A company purchased a property for $150,000, plus a 10% commission and $7,500 in closing costs. The property includes: Land appraised at $90,000 Land improvements appraised at $45,000 Building appraised at $60,000 What should be the allocation of this property, s costs in the company, s accounting records? A. Land $74,250; Land Improvements $37,125; Building $49,500 B. Land $90,000; Land Improvements $45,000; Building $60,000 C. Land $81,000; Land Improvements $40,500; Building $54,000 D. Land $37,125; Land Improvements $49,500; Building $74,250 E. Land $40,500; Land Improvements $54,000; Building $81,000

A company purchased a property for $150,000, plus a 10% commission and $7,500 in closing costs. The property includes: Land appraised at $90,000 Land improvements appraised at $45,000 Building appraised at $60,000 What should be the allocation of this property, s costs in the company, s accounting records? A. Land $74,250; Land Improvements $37,125; Building $49,500 B. Land $90,000; Land Improvements $45,000; Building $60,000 C. Land $81,000; Land Improvements $40,500; Building $54,000 D. Land $37,125; Land Improvements $49,500; Building $74,250 E. Land $40,500; Land Improvements $54,000; Building $81,000

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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