Beaumont company recently purchased some real estate that contained, land improvements (parking lot) and a...
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Accounting
Beaumont company recently purchased some real estate that contained, land improvements (parking lot) and a building. Beaumont has the property appraised after the purchase. The information is below:
Land Purchase
375,927
Land Appraisal
175,000
Improvement appraisal
87,000
Building Appraisal
210,000
1
Allocate the total cost to the three assets
Asset Description
Appraisal Values
Percent of Total Appraised Value
x total acquisition cost
= allocated cost
Land
Land improvements
Building
Totals
1
Prepare the Journal entry to record the purchase
Debit
Credit
Land
Land improvements
Building
Answer & Explanation
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