[willamay34]

Allocate the total cost of three purchases Dillon Company pays $410,000 for real estate plus $21,730 in closing costs. The real estate consists of land appraised at $230,400; land improvements appraised at $57,600; and a building appraised at $192,000.



I cant' figure out how to get the percent.

[Just Looking]

Total costs (410,000 + 21,730) are prorated based on appraisal values.

[Just Looking]

willamay34 does not find this helpful : I don't know what the values are yet

If you want people to help you, I advise that you ask your question instead of giving red marks. Our policy is not to do your homework, but to lead you in the right direction after you have tried to answer the queston on your own. I will give you another hint, but if you continue to give red marks I won't be answering any more of your questions. You have to realize this is an accountant's busy season (long, long hours) and your response added to my stress.


land appraised at $230,400; land improvements appraised at $57,600; and a building appraised at $192,000

All you have to do is add these three numbers, and then find the percentage each is of the total. For example, land is 230,400/(230400+57600+192000). When you have that percentage, multiply it by 431,730 (410,000 + 21,730). If you do this correctly for each of the three amounts, your total for the three will equal 431,730.