Current Attempt in Progress
Blossom Farms purchased real estate for $1,210,000, which included $6,500 in legal fees. It paid $264,000 cash and
incurred a mortgage payable for the balance. The real estate included land that was appraised at $481,680, a
building appraised at $735,900, and fences and other land improvements appraised at $120,420. The building has
an estimated useful life of 60 years and a $52,000 residual value. Land improvements have an estimated 15-year
useful life and no residual value.
(a)
Calculate the cost that should be allocated to each asset purchased.
Land
$
481680
Building
$
Land Improvements
$
120420
