Exercise $7-3$A Allocate costs in a basket purchase $($LO$7-1)$

Red Rock Bakery purchases land, building, and equipment for a single purchase price of $$320,000.$ However, the estimated fair values of the land, building, and equipment are $$147,000,$$$252,000,$ and $$21,000,$ respectively, for a total estimated fair $$420,000.$

Required:

Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.

$\backslash$table$[[$Land$,$Estimated Fair Value,$\backslash$table$[[$Allocation$],[$Percentage$]],\backslash$table$[[$Amount of Basket$],[$Purchase$]],\backslash$table$[[$Recorded$],[$Amount$]]],[$$$,147,000,25,\%,$$$,320,000,],[$Building$,,252,000,65,\%,,320,000,],[$Equipment$,,21,000,10,\%,,320,000,],[$Total$,$$$,420,000,,,,,$$