Rodriguez Company pays $326, 430 for real estate with land, land improvements, and a building. Land is appraised at $200,000; land improvements are appraised at $75,000; and the building is appraised at $ 225,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase.
Rodriguez Company pays $326, 430 for real estate with land, land improvements, and a building. Land is appraised at $200,000; land improvements are appraised at $75,000; and the building is appraised at $ 225,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is
appraised at $200,000; land improvements are appraised at $75,000; and the building is appraised at $
225,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac7135d9-297d-4380-9780-07c7236e5292%2Fef2d6de9-bd36-4209-8e36-fad28b08f997%2Fk89k8tc_processed.png&w=3840&q=75)
Transcribed Image Text:Rodriguez Company pays $326,430 for real estate with land, land improvements, and a building. Land is
appraised at $200,000; land improvements are appraised at $75,000; and the building is appraised at $
225,000. Allocate the total cost among the three assets. Prepare the journal entry to record the purchase.
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