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.

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 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 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. Er minus sign.) CARVER INC. Statements Model Balance Sheet Income Statement Assets = Liabilities + Equity Revenue Expenses = Net Income Statement of Cash Flows Cash + Land + Building Il + + = + =