Rodriguez Company pays $385,000 for real estate plus $20,405 in closing costs. The real estate consists of land appraised at $243,000; land improvements appraised at $108,000; and a building appraised at $189,000. Required: 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase.

Appraiseda. Total Cost of Acquisition Percent of Total -Apportioned Appraised Value Cost Value Land Land improvements Building Totals