Rodriguez Company pays $375,000 for real estate plus $19,875 in closing costs. The real estate consists of land appraised at $168,000; land improvements appraised at $84,000; and a building appraised at $168,000. 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase.

	Appraised Value	Percent of Total Appraised Value	x Total Cost of Acquisition	= Apportioned Cost
Land			394,875	$157,950.00
Land improvements			394,875	78,975.00
Building			394,875	157,950.00
Totals	$0	0%		$394,875.00