Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $336,960 for real estate with land, land improvements, and a building. Land is appraised at $210,000; land improvements are appraised at $63,000; and a building is appraised at $147,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Appraised Value Percent of Total Appraised Value x Total Cost of Acquisition = Apportioned Cost $ 50% Land Land improvements Building 15% 210,000 63,000 147,000 420,000 * 336,960 * 336,960 x 336,960 35% Totals $ 100% $ 0.00 Required 1 Required 2