Burleson, inc., purchased a tract of land, a small office building, and some equipment for $1,550,000. the appraised value of the land was $1,100,000, the building $600,000, and the equipment $300,000. what is the cost of the land?
To find the land cost, we first find the ratio that is the land at its appraised value. In this case, this would be (1100000/2000000), or 0.55. Then, the price of the purchase for the entire property is multiplied by this rate. This would give a land value of (1550000 * 0.55), or $852,500.
