Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $260,000; land improvements are appraised at $104,000; and a building is appraised at $156,000. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.

Answer and Explanation:

a. The allocation of the total cost among the three assets is shown below:

                                       (a)                          (b)                      (a × b)

     Appraise value      Total appraised      Total cost of      Apportioned

                               value                                                          cost

                               Percentage              acquisition

Land  $260,000            50%                 $342,225                $171,112.50

Land

improvemnts $104,000  20%                $342,225               $68,445

Building $156,000          30%                $342,225               $102,667.50

Total      $520,000

b. The journal entry to record the purchase is given below:

Land   $171,112.50

Land improvements $68,445

Building $102,667.50

        To Cash $342,225

(To record the purchase)

Here the asset is debited as it increased the assets and cash is credited as it decreased the assets

idk the answer so dont listen too me

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30