Ming Yue Company pays $440,000 for real estate plus $23,320 in closing costs. Th

Question

Ming Yue Company pays $440,000 for real estate plus $23,320 in closing costs. The real estate consists of land appraised at $200,000; land improvements appraised at $90,000; and a building appraised at $210,000.

Allocate the total cost among the three purchased assets. (Round your percentage answers to a whole number and other answers to the nearest dollar amount. Omit the "$" and "%" signs in your response.)

  

Appraised
value Percent of
Total Apportioned
cost   Land $ % $   Land improvements       Building       Totals $ % $

Explanation / Answer

for land

$200,000/500,000 *463320 =40%*463320 =185328

so percent is 40 and cost aportioned is $18,5328

land improvement

90,000/500,000*463320 =18% * 463320 =83398

so percent is 18 and cost is $88,398

Building

210,000 /500,000 * 463320=42% *463320 =194,594

so percent is 42 and cost is 194,594

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