Rodriguez Company pays $340,000 for real estate plus $18,020 in closing costs. T

Question

Rodriguez Company pays $340,000 for real estate plus $18,020 in closing costs. The real estate consists of land appraised at $238,500; land improvements appraised at $79,500; and a building appraised at $212,000 Required: 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Percent of Total Appraised Appraised Acquisition Percent of Total x Total Cost of Apportioned Cost Value Value Land Land improvements Building Totals $ 238,500 79,500 212,000 $530,000 0% | 0.00

Explanation / Answer

1) Amount distribution :

Journal entry :

Appraised value Percent of total appraised value *Total cost Allocated cost Land 238500 45% 358020 161109 Land improvement 79500 15% 358020 53703 Building 212000 40% 358020 143208 Total 530000 100% 358020

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