qs 10-3 (algo) lump - sum purchase of assets lo c1\ndiego company paid $181,000 cash to acquire a group of…

qs 10-3 (algo) lump - sum purchase of assets lo c1\ndiego company paid $181,000 cash to acquire a group of items consisting of land appraised at $40,400 and a building appraised at $161,600. allocate total cost to these two assets and prepare an entry to record the purchase.\ncomplete this question by entering your answers in the tabs below.\ntotal cost general journal\nallocate total cost to these two assets.\nasset percent of total apportioned cost\nland\nbuilding\ntotals

qs 10-3 (algo) lump - sum purchase of assets lo c1\ndiego company paid $181,000 cash to acquire a group of items consisting of land appraised at $40,400 and a building appraised at $161,600. allocate total cost to these two assets and prepare an entry to record the purchase.\ncomplete this question by entering your answers in the tabs below.\ntotal cost general journal\nallocate total cost to these two assets.\nasset percent of total apportioned cost\nland\nbuilding\ntotals

Answer

Explanation:

Step1: Calculate total appraised value

$40400 + 161600=202000$

Step2: Calculate percentage of land

$\frac{40400}{202000}\times100 = 20%$

Step3: Calculate percentage of building

$\frac{161600}{202000}\times100 = 80%$

Step4: Allocate cost to land

$181000\times20%=36200$

Step5: Allocate cost to building

$181000\times80% = 144800$

Answer:

Asset Percent of Total Apportioned Cost
Land 20% $36200
Building 80% $144800
Totals 100% $181000

Journal entry: Debit: Land $36200 Debit: Building $144800 Credit: Cash $181000