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A company paid $150,000, plus 6% commission, and $4,000 in closing costs for a property
A company paid $150,000, plus 6% commission, and $4,000 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 of this property’s costs in the company’s accounting records?
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- Land $75,000; Land Improvements, $30,000; Building, $45,000
- Land $75,000; Land Improvements, $30,800; Building, $46,200
- Land $81,500; Land Improvements, $32,600; Building, $48,900
- Land $79,500; Land Improvements, $32,600; Building, $47,700
- Land $87,500; Land Improvements, $35,000; Building, $52,500
Expert Solution
Answer:
c .
Step-by-Step explanation
Correct option is "C"
?
Company paid = $150000 + (.06 * $150000) + $4000
= $163000
Therefore land $81500 + improvement $ 32600 + building $48900 = $163000
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