| Buying Land |
| Beaumont company recently purchased some real estate that contained, land improvements (parking lot) and a building. Beaumont has the property appraised after the purchase. The information is below: |
| Land Purchase | 375,927 |
| Land Appraisal | 175,000 |
| Improvement appraisal | 87,000 |
| Building Appraisal | 210,000 |
| 1 | Allocate the total cost to the three assets |
| Appraised Value | Percent of Total Appraised Value | x Total Cost of Acquisition | x total acquisition cost | = allocated cost |
| Land |
| Land improvements |
| Building |
| Totals |
| 1 | Prepare the Journal entry to record the purchase |
| Debit | Credit |
| Land |
| Land improvements |
| Building |
brandon282011
AC216Unit3Assignment3-BuyingLand.xlsx
