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A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $62,000; the land at $35,000, and the parking lot at $18,000. Land should be recorded in the accounting records with an allocated cost of:

$0.
$30,435.
$35,000.
$46,087.
$100,000.

Respuesta :

Answer:

$30,435

Explanation:

The computation of the allocated cost of the land is shown below:

= Purchase value of property × land appraised value ÷ Total appraisal value

= $100,000 × $35,000 ÷ $115,000

= $30,435

The total appraisal value would be

= Appraisal value of building + appraisal value of land + appraisal value of parking lot

= $62,000 + $35,000 + $18,000

= $115,000

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