PR-11-12

On June 1, Rosio, Inc. pays $331,695 for land, land improvements, and a building. The land is appraised at $220,000; land improvements are appraised at $66,000; and the building is appraised at $154,000.

REQUIREMENTS:

1. Calculate the cost that should be allocated to the

a. land

b. land improvements

c. building

2. Record the journal entry for the purchase of the land, land improvements, and building.

1a	Cost of Land
1b	Cost of Land Improvements
1c	Cost of Building
2. Journal Entry
Date	Account	Debit	Credit

Show calculations.