Carver Inc. purchased a building and the land on which the building is situated for a total cost of $966,800 cash. The land was appraised at $177,891 and the building at $933,929. Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one. d. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Allocated Cost Land Building Total $ 0 Required A Required B > Carver Inc. purchased a building and the land on which the building is situated for a total cost of $966,800 cash. The land was appraised at $177,891 and the building at $933,929. Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one. d. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Would the company recognize a gain on the purchase? Would the company recognize a gain on the purchase? Carver Inc. purchased a building and the land on which the building is situated for a total cost of $966,800 cash. The land was appraised at $177,891 and the building at $933,929. Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one. d. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the purchase in a statements model like the following one. (Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Cash Flow column, use the initials 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 with a minus sign.) Show less CARVER INC. Statements Model Balance Sheet Income Statement Assets Liabilities + Equity Revenue Expenses Net Income Statement of Cash Flows Cash + Land + Building + + = + Carver Inc. purchased a building and the land on which the building is situated for a total cost of $966,800 cash. The land was appraised at $177,891 and the building at $933,929. Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one. d. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the purchase in general journal format. (Do not round intermediate calculations. Round your final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record purchase of land and building for cash. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal
