Question
Rodriguez Company pays $410,670 for real estate with land, land improvements, and a building. Land is appraised at $180,000; land improvements are appraised at $45,000;
Rodriguez Company pays $410,670 for real estate with land, land improvements, and a building. Land is appraised at $180,000; land improvements are appraised at $45,000; and the building is appraised at $225,000.
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
