Try another version of this question Flip-It Quick Properties bough three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows: Flip-It Quick Properties paid $425,000 in cash. Record the purchase in the journal, identifying each lot's cost in a separate Land account. Note: When inputting a percentage value, do not include the % symbol, and round your answer to two decimal places (e.g., 50.35). Use the rounded values for calculations throughout the assessment.
Lot
Appraised Value
1
$41,000
2
299,000
3
118,500
Asset Market Value Percentage of Total Value X Total Purchase Price = Assigned Cost of Each Asset Lot 1 / = X = Lot 2 / = X = Lot 3 / = X = Total Date Description Debit Credit Asset Market Value Percentage of Total Value X Total Purchase Price = Assigned Cost of Each Asset Lot 1 41000 41000 / 458500 = 8.94 X 425000 = 37995 Lot 2 299000 299000 / 458500 = 65.21 X 425000 = 277142.5 Lot 3 118500 118500 / 458500 = 25.85 X 425000 = 109862.5 Total 458500 425000 Date Description Debit Credit Lot 1 37,995.00 Lot 2 277,142.50 Lot 3 109,862.50 Cash 425,000.00