Question
Rodriguez Company pays $380,000 for real estate plus $20,140 in closing costs (Total paid = $400,140). The real estate consists of land appraised at $184,800;
Rodriguez Company pays $380,000 for real estate plus $20,140 in closing costs (Total paid = $400,140). The real estate consists of land appraised at $184,800; land improvements appraised at $79,200; and a building appraised at $176,000. (Total appraised value = $440,000).
Allocate the cost among the three purchased assets and prepare the journal entry to record the purchase.
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1111021573
