Check my work 2 Rodriguez Company pays $305,000 for real estate plus $16,165 in

Question

Check my work 2 Rodriguez Company pays $305,000 for real estate plus $16,165 in closing costs. The real estate consists of land appraised at $247,500; land improvements appraised at $110,000; and a building appraised at $192,500 10 points Required: 1. Allocate the total cost among the three purchased assets. 2. Prepare the journal entry to record the purchase. eBook Hint Print References Complete this question by entering your answers in the tabs below Required 1 Required 2 Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" answers to 2 decimal places) Percent of Total Appraised Appraised x Total Cost of Apportioned Value Acquisition Cost Value Land Land improvements Totals

Explanation / Answer

Appraised Value Percent of Total Appraised Value x Total Cost of Acquisition Apportioned Cost Land 247500 45% 321165 144524.25 Land improvements 1,10,000 20% 321165 64233 Building 1,92,500 35% 321165 112407.75 Totals 550000 100% 321165 2 Land 1,44,524.25 Land improvements 64,233.00 Building 1,12,407.75           Cash 3,21,165.00

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