Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $988,000 cash. The land was appraised at $227,240 and the bullding at $908,960. 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? Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $988,000 cash. was appraised at $227,240 and the building at $908,960. 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. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the bullding. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $988,000 cash. The was appraised at $227,240 and the building at $908,960. 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. Would the company recognize a gain on the purchase? Would the company recognize a gain on the purchase? Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $988,000 cash. The land was appraised at $227,240 and the building at $908,960. 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 buliding. 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. 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 of to designate 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 wilth a mit cells require input
