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.)

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CARVER INC.

Statements Model

Balance Sheet

Income Statement

Statement of Cash Flows

Assets

=

Liabilities

+

Equity

Revenue

Expenses

=

Net Income

Cash

+

Land

+

Building

=

+

+

=

+

=