Pattia Company purchased property with a warehouse and parking lot for $1,500,000. An appraiser valued the components of the property if purchased separately as follows.
|
Land
|
$ 400,000
|
|
Land improvements
|
200,000
|
|
Building
|
1,000,000
|
|
Total
|
$1,600,000
|
Determine the cost to be assigned to each component.