Question: Renfro Corporation purchased for $765,000 a tract of land on which was located a warehouse and an office building. The following information is available concerning the property that was purchased:
Current Market Value Land .................... $300,000
Warehouse ............... 200,000
Office building ......... 400,000
What are the appropriate amounts that Renfro should record in its balance sheet as the cost of the land, warehouse, and office building, respectively.
land $255,000; warehouse $155,000; office building $355,000
land $300,000; warehouse $200,000; office building $400,000
land $273,214; warehouse $163,929; office building $327,857
land $255,000; warehouse $170,000; office building $340,000
land $345,000; warehouse $230,000; office building $460,000