Rodriguez Company pays $395,380 for real estate with land, land improvements, and a building. Land is appraised at $157,040; land improvements are appraised at $58,890; and the building is appraised at $176,670.

1. Allocate the total cost among the three assets.

2. Prepare the journal entry to record the purchase.

Allocate the total cost among the three assets.

	Appraised Value	Percent of Total Appraised Value	Total Cost of Acquisition	= Apportioned Cost
Land
Land improvements
Building
Totals