Question: Crane Farms purchased real estate for $1,205,000, which included $6,200 in legal fees. It paid $250,000 cash and incurred a mortgage payable for the balance. The real estate included land that was appraised at $476,000, a building appraised at $761,600, and fences and other land improvements appraised at $122,400. The building has an estimated useful life of 60 years and a $52,000 residual value. Land improvements have an estimated 15-year useful life and no residual value. (a) Calculate the cost that should be allocated to each asset purchased. Land Building Land Imbrovements