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Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $ 8 5 9 , 7
Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $ cash. The land was appraised at $ and the building at $
Required
a Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building.
b Would the company recognize a gain on the purchase?
c Record the purchase in a horizontal statements model.
d Record the purchase in general journal format.
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