Rodriguez Company pays $370,000 for real estate plus $19,610 in closing costs. The real estate consists of land appraised at $189,000; land improvements appraised at $63,000; and a building appraised at $198,000.
Allocate the total cost among the three purchased assets. (Round your "Apportioned Cost" answers to 2 decimal places.)
|
| Purchase price | $ | 370,000 |
| Closing costs | 19,610 | |
| Total cost of acquisition | $ | 389,610 |
Allocation of total cost
| Applying % to Cost | Apportioned Cost | |||
| Land | $389,610 × 0.42 | $ | 163,636.20 | |
| Land improvements | $389,610 × 0.14 | 54,545.40 | ||
| Building | $389,610 × 0.44 | 171,428.40 | ||
| Totals | $ | 389,610.00 | ||
| Prepare the journal entry to record the purchase. (Round your answers to 2 decimal places.) |
No further explanation details are available for this problem.
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