A company paid 150,000 plus a 7% commission and 5,000 in closing costs for a property. The property included land appraised at 87,500 land improvements appraised at 35,000 and a building appraised at 52,500 . What should be the allocation of this property's costs in the company's accounting records? Land 80,250 Land Improvements, 32,100 Building, 48,150 Land 75,000 Land Improvements, 30,800 Building, 46,200 Land 77,500 Land Improvements; 31,000 Building; 46,500 Land 75,000 Land Improvements, 30,000 Building, 45,000 Land 82,750 Land Improvements 33,100 Building, 49,650

To determine the allocation of the property's costs in the company's accounting records, we need to follow these steps:1. Calculate the total cost of the property.2. Determine the proportionate value of each component (land, land improvements, and building) based on their appraised values.3. Allocate the total cost to each component based on these proportions.### Step 1: Calculate the Total CostThe company paid:- Purchase price: of = Total cost = Purchase price + Commission + Closing costs ### Step 2: Determine the Proportionate ValueAppraised values:- Land: - Building: Proportions:- Land: - Land improvements: - Building: ### Step 3: Allocate the Total CostAllocate the total cost of based on the proportions calculated:- Land: - Land improvements: - Building: Thus, the allocation of the property's costs in the company's accounting records should be:- Land: - Building: ; Land Improvements, .