Carver Inc. purchased a building and the land on which the building is situated for a total cost of $867,100 cash. The land was appraised at $199,433 and the building at $797,732.

Required

2. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building.

3. Would the company recognize a gain on the purchase?

4. Record the purchase in a horizontal statements model.

Answer is not complete. Complete this question by entering your answers in the tabs below. 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 intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Allocated Cost Land Building Total $ 199,433 X 797,732 S 997,165 Answer is not complete. Complete this question by entering your answers in the tabs below. Required B Required C Required D Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (I or a financing activity (FA). If an element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Round intermediate calculations to 2 decimal places and final answers to the nearest whole number.) Show less CARVER INC. Horizontal Statements Model Balance Sheet Income Statement Assets Statement of Cash Flows Liabilities + Equity Revenue Expense Net Income Cash Land Building (867,100) 229,348 x 917,392 =