Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $410,670 for real estate with land, land improvements, and a building. Land is appraised at $204,000; land improvements are appraised at $76,500; and the building is appraised at $229,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $410,670 for real estate with land, land improvements, and a building. Land is appraised at $204,000; land improvements are appraised at $76,500; and the building is appraised at $229,500. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1
Rodriguez Company pays $410,670 for real estate with land, land improvements, and a building. Land is appraised at $204,000; land
improvements are appraised at $76,500; and the building is appraised at $229,500.
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Allocate the total cost among the three assets.
Note: Round your "Apportioned Cost" answers to 2 decimal places.
Land
Land improvements
Building
Totals
Appraised
Value
$
0
Percent of Total x Total Cost of
Appraised
Value
Acquisition
40%
40%
Required
= Apportioned
Cost
* 410,670 $
* 410,670
* 410,670
$
164,268.00
164,268.00
Required 2 >
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