Answer and Explanation:
The computation and the journal entry is shown below;
a. The allocation of the total cost among the three assets is shown below:
<u> (a) (b) (a × b) </u>
<u> Appraise value Total appraised Total cost of Apportioned </u>
<u> value cost </u>
<u> Percentage acquisition</u>
Land $250,000 50% $352,755 $176,377.5
Land
improvemnts $50,000 10% $352,755 $35,275.5
Building $200,000 40% $352,755 $141,102
Total $500,000
b. The journal entry to record the purchase is shown below:
Land $176,377.5
Land improvements $35,275.5
Building $141,102
To Cash $352,755
(To record the purchase)
The asset is debited as it rise the assets and cash is credited as it decreased the assets