Rodriguez Company pays $325,000 for real estate plus $17,225 in closing costs. The real estate...
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Accounting
Rodriguez Company pays $325,000 for real estate plus $17,225 in closing costs. The real estate consists of land appraised at $265,000; land improvements appraised at $79,500; and a building appraised at $185,500.
Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" answers to 2 decimal places.)
Appraised Value
Percent of Total Appraised Value
x Total Cost of Acquisition
= Apportioned Cost
Land
Land improvements
Building
Totals
Record the costs of lump-sum purchase.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
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