Carver Inc. purchased a building and the land on which the building is situated for a total cost of $895,300 cash. The land was appraised at $164,735 and the building at $864,860. Carver Inc. purchased a building and the land on which the building is situated for a total cost of $895,300 cash. The land was appraised at $164,735 and the building at $864.860. Required a. What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. c. Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model. Required a. What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building, c. Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required A A Required B Required C Required D Required A A Required B B Required C Required D What is the accounting term for this type of acquisition? Would the company recognize a gain on the purchase? Type of acquisition as per accounting Would the company recognize a gain on the purchase? B PICTOSOT Photos - Q6.PNG Im + Add to See all photos + Add to 16 8 e A On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $69,300. The equipment had a three-year estimated life with a $5,100 salvage value. Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $4,100. Carver Inc. purchased a building and the land on which the building is situated for a total cost of $895,300 cash. The land was appraised at $164.735 and the building at $864,860. Required a. What is the accounting term for this type of acquisition? b b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. c. Would the company recognize again on the purchase? d. Record the purchase in a horizontal statements model. Required Compute the depreciation expense for each of the four years, Year 1-Year 4. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Depreciation Expense Record the purchase in a horizontal statements model. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar. In the Statement of Cash Flows coll OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter any decreases to account balances and minus sign. Not all cells require input.) Year 1 Year 2 Year 3 Year 4 CARVER INC Horizontal Statements Model Balance Sheet Income Statement Assets Statement of Cash Flows Liabilities Stockholder's Equity Revenue Expenses Net Income Cash + Land + Building