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  1. business
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  3. a company paid $110,000, plus a 9% commission and

A company paid $110,000, plus a 9% commission and $8,500 in closing costs for a...

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Accounting

A company paid $110,000, plus a 9% commission and $8,500 in closing costs for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. What should be the allocation of this property's costs in the company's accounting records?

Multiple Choice

  • Land $25,680; Land Improvements, $38,520; Building, $64,200

  • Land $87,500; Land Improvements; $35,000; Building; $52,500

  • Land $55,000; Land Improvements, $22,000; Building, $33,000

  • Land $22,000; Land Improvements, $33,000; Building, $55,000

  • Land $64,200; Land Improvements, $25,680; Building, $38,520

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