Problem -
(Determine cost of land and building when acquired together)
Laural Company paid $840,000 cash for real property consisting of a tract of land and a building. The company intended to remodel and use the old building. To allocate the cost of the property acquired, Laural had the property appraised. The appraised values were as follows: land, $576,000, and office building, $384,000. The cost of clearing the land was $18,000. The building was remodeled at a cost of $76,800. The cost of a new identical office building was estimated to be $432,000. Create a schedule showing the cost of the assets acquired.