Renfro Corporation Property Acquisition

What are the amounts that Renfro should record for the land, warehouse, and office building, respectively?

Renfro Corporation should record the following amounts for the property acquisition: - Land = $255,000 - Warehouse = $170,000 - Office building = $340,000

Explanation:

Purchase price = $765,000

Appraised values of:

- Land = $300,000

- Warehouse = $200,000

- Office building = $400,000

Total appraised value = $900,000

Land = $255,000 ($765,000/$900,000 * $300,000)

Warehouse = $170,000 ($765,000/$900,000 * $200,000)

Office building = $340,000 ($765,000/$900,000 * $400,000)

Total = $765,000