What are the appropriate amounts that Mooney should record for the land, warehouse, and office building, respectively?

Explanation:

Mooney Corporation purchased a tract of land with a warehouse and office building for $1,624,500. To allocate the total purchase price based on the current assessed valuation of the property, the company should follow the principle of purchase price allocation.

Purchase Price Allocation: This principle requires the allocation of the total purchase price among the acquired assets based on their relative fair values at the time of acquisition.

Current Assessed Valuation: The current assessed valuation of the land, warehouse, and office building are $600,000, $400,000, and $800,000 respectively, making a total valuation of $1,800,000. The vendor's original cost for the land, warehouse, and office building are $560,000, $360,000, and $680,000 respectively, adding up to $1,600,000.

To allocate the purchase price, we can use the current assessed valuation as it represents the most recent valuation of the properties. The total current assessed valuation is $1,800,000, and the purchase price is $1,624,500. The purchase price should be distributed among the land, warehouse, and office building based on their respective values relative to the total valuation.

Allocation Calculation:

Land: ($600,000 / $1,800,000) x $1,624,500 = $540,833.33

Warehouse: ($400,000 / $1,800,000) x $1,624,500 = $360,555.56

Office Building: ($800,000 / $1,800,000) x $1,624,500 = $723,111.11

Therefore, Mooney Corporation should record the land for $540,833.33, the warehouse for $360,555.56, and the office building for $723,111.11 in its financial statements.