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Wildhorse Farms purchased real estate for $ 1 , 1 5 5 , 0 0 0 , which included $ 4 , 6 0 0
Wildhorse Farms purchased real estate for $ which included $ in legal fees. It paid $ cash and incurred a
mortgage payable for the balance. The real estate included land that was appraised at $ a building appraised at $ and
fences and other land improvements appraised at $ The building has an estimated useful life of years and a $
residual value. Land improvements have an estimated year useful life and no residual value.
a
Calculate the cost that should be allocated to each asset purchased.
Land
$
Building
$
Land Improvements
$
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