Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $$854,400$ cash. The land was appraised at $$206,338$ and the building at $$776,222.$

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 $A$

What is the accounting term for this type of acquisition?

What is the accounting term for this type of acquisition?

Required $A$

Required B

Required D

Determine the amount of the purchase cost to allocate to the land and the amount to allo Note: Round intermediate calculations to $2$ decimal places and final answers to the neare

$\backslash$table$[[,$Allocated Cost$],[$Land$,],[$Building$,],[$Total$,]]$

Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $$854,400$ cash. The land was appraised at $$206,338$ and the building at $$776,222.$

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 $A$

Would the company recognize a gain on the purchase?

Would the company recognize a gain on the purchase?

Required $A$

Required B

Required C

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 finan affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. places and final answers to the nearest whole number. Not all cells will require entry.

$\backslash$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,$=,\backslash$table$[[$Net$],[$Income$]]],[$Cash$,+,$Land,$+,$Building$],[,+,,+1,,=,,+,,,-,,=,,]]$