A Company Paid $770,000 Plus $5,000 in Closing Costs for Property

Essay

A company paid $770,000 plus $5,000 in closing costs for property that included land appraised at $384,000; land improvements appraised at $128,000; and a building appraised at $288,000.The plan is to use the building as a manufacturing plant.Determine the amounts that should be recorded as:
(a)Land…………………. $ ______________________________________
(b)Land Improvements.... $ ______________________________________
(c)Building……………… $_______________________________________