Exercise 8-3 Lump-sum purchase of plant assets LO C1

Rodriguez Company pays $350,000 for real estate plus $18,550 in closing costs. The real estate consists of land appraised at $211,500; land improvements appraised at $70,500; and a building appraised at $188,000. Required: 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase.

complete this question by entering your answers in the tabs below. Required 1

Journal entry worksheet

• Record the costs of lump-sum purchase.

Required 2 Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Appraised Value Percent of Total Appraised Value x Total Cost of Acquisition = Apportioned Cost Land Land improvements Building Totals Required