Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $$915,600$ cash. The land was appraised at $$157,941$ and the building at $$894,999.$

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 horizontal statements model.

Complete this question by entering your answers in the tabs below.

What is the accounting term for this type of acquisition?

Type of acquisition as per accounting

homework $($i$)$

Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $$846,300$ cash. The land was appraised at $$194,649$ and the building at $$778,596.$

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 horizontal statements model.

Complete this question by entering your answers in the tabs below.

Required $A$

Required D

Record the purchase in a horizontal statements model.

Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Statement of Cash Flows column, use the initials OA to designate operating 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 and cash outflows with a minus sign. cells require input.

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$\backslash$table$[[$CARVER INCORPORATED$],[$Horizontal Statements Model$],[$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of Cash$],[$Flows$]]],[,+,,+,,=,,+,,,-,$Expenses,$\backslash$table$[[=$