question 2 practice

Exercise 8-3 (Static) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $395 380 for real estate with land, land improvements, and a building Land is appraised at $157040; fanc improvements are appraised at $58,890, and the building is appraised at $176,670 1. Allocate the total cost among the three 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 assets. Appraised Value Percent of Total Appraised Value x Total Cost of Acquisition Apportioned Cost $ Land Land improvements Building Totals 157,040 58 890 176,670 392.600 40% 15% 45% 100% 395 380 5 395 380 - 395 380 5 158,152 59 307 177.921 395.380 S Neyt Journal entry worksheet