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Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It paid $254,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $483,120, a building appraised at $738,100, and fences and other land improvements appraised at $120,780. The building has an estimated useful life of 60 years and a $51,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. (a) * Your answer is incorrect. Calculate the cost that should be allocated to each asset purchased. Land Building Land Improvements S S $ 885240.495 93449.3816 221310.124

Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It paid $254,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $483,120, a building appraised at $738,100, and fences and other land improvements appraised at $120,780. The building has an estimated useful life of 60 years and a $51,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. (a) * Your answer is incorrect. Calculate the cost that should be allocated to each asset purchased. Land Building Land Improvements S S $ 885240.495 93449.3816 221310.124

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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Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It paid $254,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $483,120, a building appraised at $738,100, and fences and other land improvements appraised at $120,780. The building has an estimated useful life of 60 years and a $51,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. (a) * Your answer is incorrect. Calculate the cost that should be allocated to each asset purchased. Land Building Land Improvements LA LA 885240.495 93449.3816 221310.124
Transcribed Image Text:Carla Vista Farms purchased real estate for $1,200,000, which included $4,900 in legal fees. It paid $254,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $483,120, a building appraised at $738,100, and fences and other land improvements appraised at $120,780. The building has an estimated useful life of 60 years and a $51,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. (a) * Your answer is incorrect. Calculate the cost that should be allocated to each asset purchased. Land Building Land Improvements LA LA 885240.495 93449.3816 221310.124
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