Concept

# Problem: On April 1, 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 purchased: What are the appropriate amounts that Renfro should record in its balance sheet as the cost of the land, warehouse, and office building, respectively? a. land$255,000; warehouse $155,000; office building$355,000 b. land $273,214; warehouse$163,929; office building $327,857 c. land$300,000; warehouse $200,000; office building$400,000 d. land $255,000; warehouse$170,000; office building $340,000 e. land$345,000; warehouse $230,000; office building$460,000

###### Problem Details

On April 1, 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 purchased: What are the appropriate amounts that Renfro should record in its balance sheet as the cost of the land, warehouse, and office building, respectively? a. land$255,000; warehouse $155,000; office building$355,000

b. land $273,214; warehouse$163,929; office building $327,857 c. land$300,000; warehouse $200,000; office building$400,000

d. land $255,000; warehouse$170,000; office building $340,000 e. land$345,000; warehouse $230,000; office building$460,000