Carver Inc purchased a building and the land on which the building is situated for a total cost of $808,800 cash The land was appraised at $167,422 and the building at $762,698 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 statements model 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 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 Statement of Cash Flows Assets Liabilities Equity Revenue Expenses Net Income Cash Land Building

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 31, 2024

Carver Inc. purchased a building and the land on which the building is situated for a total cost of $808,800 cash. The land was appraised

Carver Inc. purchased a building and the land on which the building is situated for a total cost of $808,800 cash. The land was appraised at $167,422 and the building at $762,698. 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 statements model.

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

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