A Company Paid $150,000,plus a 7% Commission and $5,000 in Closing

question 161

Multiple Choice

A company paid $150,000,plus a 7% commission and $5,000 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 costs in the company's accounting records?

• A)Land $75,000;Land Improvements,$30,000;Building,$45,000.
• B)Land $75,000;Land Improvements,$30,800;Building,$46,200.
• C)Land $82,750;Land Improvements,$33,100;Building,$49,650.
• D)Land $80,250;Land Improvements,$32,100;Building,$48,150.
• E)Land $77,500;Land Improvements;$31,000;Building;$46,500.

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