Comptel Corporation purchased land,a building and equipment for a total cost of $525,000.The appraised values of the land,building and equipment were $150,000,$375,000 and $75,000,respectively.The purchase price allocated to the land should be:

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The purchase price allocated to each asset should be based on their relative fair market values. The total appraised value is $150,000 (land) + $375,000 (building) + $75,000 (equipment) = $600,000. The land's portion of the total appraised value is $150,000 / $600,000 = 1/4 or 25%. Therefore, the purchase price allocated to the land is 25% of $525,000, which is $131,250.

Comptel Corporation Purchased Land,a Building and Equipment for a Total