Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rodriguez Company pays $379,080 for real estate with land, land improvements, and a building. Land is appraised at $255,000; land improvements are appraised at

image text in transcribedimage text in transcribed

Rodriguez Company pays $379,080 for real estate with land, land improvements, and a building. Land is appraised at $255,000; land improvements are appraised at $102,000; and the building is appraised at $153,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Allocate the total cost among the three assets. (Round your "Apportioned Cost" answers to 2 decimal places.) Appraised Value Percent of Total Appraised Value Total Cost of Acquisition = Apportioned Cost Land Land $ 255,000 67% 379,080 $ 253,984.00 improvements Building 102,000 153,000 27% 379,080 6% * 379,080 102,352.00 x 22,744.000 Totals $ 510,000 100% $ 379,080.00 < Required 1 Required 2 > Rodriguez Company pays $379,080 for real estate with land, land improvements, and a building. Land is appraised at $255,000; land improvements are appraised at $102,000; and the building is appraised at $153,000. 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record the purchase. (Round your answers to 2 decimal places.) No Transaction A 1 Land Land improvements Building Cash General Journal < Required 1 Required 2 > Debit 253,984.00 X Credit 102,352.00 22,744.00 379,080.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory and Practice

Authors: Eugene F. Brigham, Michael C. Ehrhardt

15th edition

130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295

More Books

Students also viewed these Finance questions