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Bobs Company pays $375,280 for real estate plus $20,100 in closing costs. The real estate consists of land appraised at $157,040; land improvements appraised at

Bobs Company pays $375,280 for real estate plus $20,100 in closing costs. The real estate consists of land appraised at $157,040; land improvements appraised at $58,890; and a building appraised at $176,670.

Required:

1.Allocate the total cost among the three purchased assets.

2.Prepare the journal entry to record the purchase.

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