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Question - Lump-sum purchase of plant assets - Rodriguez Company pays $358,020 for real estate with land, land improvements, and a building. Land is appraised at $180,000; land improvements are appraised at $60.000; and the building is appraised at $160.000.
Required -
1. Allocate the total cost among the three assets.
2. Prepare the journal entry to record the purchase.
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