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

1	Allocate the total cost to the three assets
	Asset Description	Appraisal Values	Percent of Total Appraised Value	x total acquisition cost	= allocated cost
	Land
	Land improvements
	Building
	Totals
1	Prepare the Journal entry to record the purchase
		Debit	Credit
	Land
	Land improvements
	Building