SportsWorld paid $140,000 for a property. The property included land appraised at $67,500, land improvements appraised at $25,000, and a building appraised at $55,500. What should be the allocation of costs in the accounting records (round calculations to 3 decimals)?Multiple Choice Land $62,000; land improvements, $23,000; building, $45,000 Land $63,840; land improvements, $23,660; building, $52,500 Land $87,500; land improvements; $35,000; building; $52,500 Land $79,500; land improvements, $32,600; building, $47,700 Land $62,000; land improvements, $23,800; building, $46,200

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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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SportsWorld paid $140,000 for a property. The property included land appraised at $67,500, land improvements appraised at $25,000, and a building appraised at $55,500. What should be the allocation of costs in the accounting records (round calculations to 3 decimals)?

Multiple Choice

Land $62,000; land improvements, $23,000; building, $45,000
Land $63,840; land improvements, $23,660; building, $52,500
Land $87,500; land improvements; $35,000; building; $52,500
Land $79,500; land improvements, $32,600; building, $47,700
Land $62,000; land improvements, $23,800; building, $46,200

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