Question: Dillon company pays 404000 for real estate plus 21500 in
Dillon Company pays $404,000 for real estate plus $21,500 in closing costs. The real estate consists of land appraised at $217,140; land improvements appraised at $83,160; and a building appraised at $161,700. Allocate the total cost among the three purchased assets and prepare the journal entry to record the purchase.
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