Answer:
Rodriguez Company
Purchase price = $405,405
Land is appraised at $202,500
Land improvements $67,500
Building appraised at $180,000
Total appraised value $450,000
Land will be apportioned $202,500/$450,000 x $405,405 = $182,432.25
Land improvements will be apportioned $67,500/$450,000 x $405,405 = $60,810.75
Building will be apportioned $180,000/$450,000 x $405,405 = $162,162
Total cost of assets = $405,405.
2. Journal Entries:
Debit Land $182,432.25
Debit Land Improvements $60,810.75
Debit Building $162,162
Credit Cash Account $405,405
To record the purchase of the assets.
Explanation:
The purchase price is proportionately allocated to the items based on their appraisal values.
