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  3. wildhorse farms purchased real estate for $1,155,0

Wildhorse Farms purchased real estate for $1,155,000, which included $4,600 in legal fees. It paid...

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Accounting

Wildhorse Farms purchased real estate for $1,155,000, which included $4,600 in legal fees. It paid $255,000 cash and incurred a
mortgage payable for the balance. The real estate included land that was appraised at $473,900, a building appraised at $758,240, and
fences and other land improvements appraised at $121,860. The building has an estimated useful life of 60 years and a $51,000
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
$
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