Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $$860,200$ cash. The land was appraised at $$247,308$ and the building at $$741,922.$

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 D

Record the purchase in a horizontal statements model.

Note: In the Cash Flow column, indicate whether the item is an operating activity $($OA$),$ an investing activity $($IA$),$ 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. Not all cells will require entry.

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$\backslash$table$[[$CARVER INCORPORATED$],[$Horizontal Statements Model$],[$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of Cash$],[$Flows$]]],[$Assets$,,$Liabilities $+,\backslash$table$[[$Stockholders$\text{'}],[$Equity$]],$Revenue,$-$ Expenses,$\{\{$f$7$e$3$ad$472-9$c$7$b$-4$aa$5-$bf$74-5$f$0458$e$0$ae$67\}$

$\backslash$table$[[$Net$],[$Income$]]\}],[$Cash$,+,$Land,$+,$Building,$],[,+,,+,,,,+,,,--,=,,]$