Buying Land Beaumont company recently purchased some real estate that contained, land improvements (parking lot) and a
Question:
Buying Land 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
Question how to Allocate the total cost to the three assets:
1) Asset Description for land, land improvements and for the building?
2)Appraisal Values for land, land improvements, and for the building?
3)Percent of Total Appraised Value x total acquisition cost = allocated cost for Land, for Land improvements , for the Building and what would the Totals be?
Question: How to do Journal entry to record the purchase for Land ?
- Land improvements ?
- Building ?