Exercise 6-5A (Algo) Allocating costs on the basis of relative market values LO 6-1 Carver Inc. purchased a building and the land on which the building is situated for a total cost of $808,800 cash. The land was appraised at $204,626 and the building at $725,494. 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? Exercise 6-5A (Algo) Allocating costs on the basis of relative market values LO 6-1 Carver Inc. purchased a building and the land on which the building is situated for a total cost of $808,800cash. The land was appraised at $204,626 and the building at $725,494. 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. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) Exercise 6-5A (Algo) Allocating costs on the basis of relative market values LO 6-1 Carver Inc. purchased a building and the land on which the building is situated for a total cost of $808,800cash. The land was appraised at $204,626 and the building at $725,494. 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. Would the company recognize a gain on the purchase? Carver Inci purchased a bullding and the land on which the building is situated for a total cost of $808,800 cash. The land was appraised at $204,626 and the buliding at $725,494. 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 modet Complete this question by entering your answers in the tabs below. Record the purchase in a horizontal statements model. (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. Entec any decreases to account balances and cash outflows with a minus sign. Pound intermediate calcuiations to 2 decimal places and final answers to the nearest whole number. Not all cells wili require entry.)
