Problem -

(Determine cost of land   and building when   acquired together)

Laural Company paid $840,000 cash for real property consisting of a tract of land and a building. The company intended to remodel and use the old building. To allocate the cost of the   property acquired, Laural had the property appraised. The appraised values were as follows:   land, $576,000, and office building, $384,000. The cost of clearing the land was $18,000. The   building was remodeled at a cost of $76,800. The cost of a new identical office building was   estimated to be $432,000. Create a schedule showing the cost of the assets acquired.