Ch. 9\ Question 2 of 8\

(-)/(15)

\ Current Attempt in Progress\ Pharoah Farms purchased real estate for

$1,170,000

, which included

$4,100

in legal fees. It paid

$244,000

cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at

$477,400

, a building appraised at

$750,200

, and fences and other land improvements appraised at

$136,400

. The building has an estimated useful life of 60 years and a

$51,000

residual value. Land improvements have an estimated 15-year useful life and no residual value.\ (a)\ Calculate the cost that should be allocated to each asset purchased.\ Land\

$

\ Building\

$

\ Land Improvements $\ eTextbook and Media\ Search

Pharoah Farms purchased real estate for $1,170,000, which included $4,100 in legal fees. It paid $244,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $477,400, a building appraised at $750,200, and fences and other land improvements 'appraised at $136,400. The building has an estimated useful life of 60 years and a $51,000 residual value. Land improvements have an estimated 15 -year useful life and no residual value. (a) Calculate the cost that should be allocated to each asset purchased. Land $ Building $ Land Improvements $