Answer:
Land = $158,152
Land improvements = $59,307
Building = $177,921
Total = $395,380
Explanation:
Price paid = 375,280 + 20,100 =395,380
To Allocate we use the market values of the assets and make them their standalone prices
Land = 157,040
improvements= 58,890
Building = 176,670
Total =392,600
then we use the standalone prices as ratios
Land = 395,380 * 157,040/392,600 =158,152
Improvements = 395,380 *58,890/392,600 =59,307
Building = 395,380 * 176,670/392,600 = 177,921