[akbkarma]

A company acquired land an attached building for $600,000 on 7/1/08. The appraised value of these two assets is $250,000 for the land and $500,000 for the building. Based on the appraisal, how much of the $600,000 cost should the company allocate to the land?

I got $200,000 for the land, can anyone tell me if this is correct. If not, is there a easier formula that just plugging in percentages?

[morgaine300]

It's correct, and using percentages is the only way to do it. You must first figure what proportion of the total appraised value is the land (.33333 or 1/3) and then apply that to the purchase price. It's pretty much the only way to do it. I leave it in the calculator and just keep going, i.e. 250,000/750,000 * 600,000 straight through. So you don't have to call it a percentage if you don't like them. :-)