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 $700,000 cash. The land was appraised at $320,000 and the building at $480,000 Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one. d. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D os Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. Allocated Cost Land Building Total Requid Required B > 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 $700,000 cash. The land was appraised at $320,000 and the building at $480,000 Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one. d. Record the purchase in general journal format. Complete this question by entering your answers in the tabs below. Required A Requirdo B Required Required D Would the company recognize a gain on the purchase? Would the company recognize a gain on the purchase? 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 $700,000 cash. The land was appraised at $320,000 and the building at $480,000 Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building b. Would the company recognize again on the purchase? c. Record the purchase in a statements model like the following one d. Record the purchase in general Journal format. Complete this question by entering your answers in the tabs below. Required A Required Required Required Record the purchase in a statements model like the following one. (In the Cash Flow column, use the initials A to designate operating activity, IA for investin for net change in cash and NA for not affected. Enter any decreases to account balances with a minus sign) CARVER INC Statements Model Balance Sheet Assets Land Liabilities Income Statement Expenses Net Income . Equity Cash Revenue Statement of Cash Flows Bldg . 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 $700.000 cash. The land was appraised of $320,000 and the building at $180,000 Required a. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building, b. Would the company recognize a gain on the purchase? c. Record the purchase in a statements model like the following one d. Record the purchase in general Journal format Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Record the purchase in general journal format. (If no entry is required for a transaction/event, select "No journal entry required in the first account hield.) View transaction inst Journal entry worksheet
