Exercise 8-5A Allocating costs on the basis of relative market values LO 8-1 Carver Inc. purchased a building and the land on which the building is situated for a total cost of $900,800 cash. The land was appraised at $186,466 and the building at $849,454. 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 statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Allocated Cost Land Building Total $ 0 Exercise 8-5A Allocating costs on the basis of relative market values LO 8-1 Carver Inc. purchased a building and the land on which the building is situated for a total cost of $900,800 cash. The land was appraised at $186,466 and the building at $849,454. 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 statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the purchase in a statements model like the following one. (Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Ca initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter any decreases to a minus sign.) CARVER INC. Statements Model Balance Sheet Income Statement Assets Liabilities Equity Revenue Expenses = Net Income Statement of Cash Flows + Cash (900,800) + Land 186.466 + Building 849,454 = (900,800) 1A