On April $12,2021,$ Prism Ltd$.,$ a camera lens manufacturer, purchased real estate for $$xxx.$ Prism paid cash of $$xxx$ and

incurred a mortgage payable for the balance. The company also paid $$xxx$ cash in closing costs. The real estate included land

appraised at $XXX; land improvements appraised at $XXX; and a building appraised at XXX$.$ Prepare a calculation showing the

allocation of the total cost among the three purchased assets and present the journal entry to record the purchase.

Use the amounts in the blue boxes below where $$xxx$ is shown in the text box above.

Instructions: $($a$)$ Using the green boxes below, calculate the cost that should be allocated to each asset purchased.

$($b$)$ Record the purchase of the real estate.