Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $$904,000$ cash. The land

was appraised at $$155,940$ and the building at $$883,660.$

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.

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What is the accounting term for this type of acquisition?

What is the accounting term for this type of acquisition?