Rodriguez Company pays $522,160 for real estate with land, land improvements, and a building. The land is appraised at $265,080; land improvements are appraised at $106,032; and a building is appraised at $159,048. Required: Allocate the total cost among the three assets.

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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Rodriguez Company pays $522,160 for real estate with land, land improvements, and a building. The land is appraised at $265,080; land improvements are appraised at $106,032; and a building is appraised at $159,048. Required: Allocate the total cost among the three assets.

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