Question

A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $57,000; the land at $49,000, and the parking lot at $19,000. Land should be recorded in the accounting records with an allocated cost of:

Answer 1

the land recorded with an allocated cost is $39,200

Step-by-step explanation:

The computation of the land recorded with an allocated cost is

Total appraised value is

= $57,000 + $49,000 + $19,000

= $125,000

Now for land, the allocated value is

= $100,000 × 49000 ÷ 125000

= $39,200

Hence, the land recorded with an allocated cost is $39,200

The same is to be considered by doing above calculations