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Question 1 of 5 Wildhorse Farms purchased real estate for $1,230,000, which included...

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Accounting

Question 1 of 5
Wildhorse Farms purchased real estate for $1,230,000, which included $5,300 in legal fees. It paid $262,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $477,360, a building appraised at $729,300, and fences and other land improvements appraised at $119,340. The building has an estimated useful life of 60 years and a $48,000 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
$
Building
$
Land Improvements
image

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