Exercise 7-3 (Algo) Allocate costs in a basket purchase (LO7-1) Red Cedar Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair values of the land, building, and equipment are $231,000, $363,000, and $66,000, respectively, for a total estimated fair value of $660,000. Required: Determine the amounts Red Cedar should record in the separate accounts for the land, the building, and the equipment. Estimated Fair Value Allocation Percentage Land Building $ 231,000 35% $ 363,000 55 % Equipment 66,000 10 % Total $ 660,000 Amount of Basket Purchase Recorded Amount 560,000 560,000 560,000 $ 0