rodriguez company pays $342,225 for real estate with land, land improvements, and a building. land is…
rodriguez company pays $342,225 for real estate with land, land improvements, and a building. land is appraised at $238,500; land improvements are appraised at $79,500; and the building is appraised at $212,500. complete this question by entering your answers in the tabs below. required 1 required 2 allocate the total cost among the three assets. note: round your “apportioned cost” answers to 2 decimal places. asset appraised value percent of total appraised value × total cost of acquisition = apportioned cost land land improvements building totals $ 0 0% $ 0.00
Answer
Explanation:
Step1: Calculate total appraised value
$238500 + 79500+212500=530500$
Step2: Calculate percentage of total appraised value for land
$\frac{238500}{530500}\times100%\approx44.96%$
Step3: Calculate apportioned cost for land
$0.4496\times342225\approx153864.36$
Step4: Calculate percentage of total appraised value for land - improvements
$\frac{79500}{530500}\times100%\approx14.99%$
Step5: Calculate apportioned cost for land - improvements
$0.1499\times342225\approx51209.53$
Step6: Calculate percentage of total appraised value for building
$\frac{212500}{530500}\times100%\approx40.06%$
Step7: Calculate apportioned cost for building
$0.4006\times342225\approx137151.11$
Answer:
| Asset | Appraised Value | Percent of Total Appraised Value | Total Cost of Acquisition | Apportioned Cost |
|---|---|---|---|---|
| Land | $238500$ | $44.96%$ | $342225$ | $153864.36$ |
| Land Improvements | $79500$ | $14.99%$ | $342225$ | $51209.53$ |
| Building | $212500$ | $40.06%$ | $342225$ | $137151.11$ |
| Totals | $530500$ | $100%$ | $342225$ | $342225.00$ |