Jeffers Inc. purchased a warehouse and the land upon which it was located. The total price was $450,000. The land was appraised for $180,000 while the warehouse was appraised for $360,000. What account balances should Jeffers show in its general ledger?
A) Land $180,000; Warehouse $360,000
B) Land $150,000; Warehouse $300,000
C) Land $166,667; Warehouse $333,333
D) Land $150,000; Warehouse $350,000

Question

Quizplus · Accepted Answer

Calculation: $180,000/($180,000 + $360,000) = 33.33% × $450,000 = $150,000 $360,000/($180,000 + $360,000) = 66.67% × $450,000 = $300,000.