Lump-Sum Purchase of Assets and Subsequent Events Carter Development Company purchased, for cash, a large tract of land that was immediately platted and deeded into the following smaller sections:

Section 1, retail development with highway frontage

Section 2, multifamily apartment development

Section 3, single-family homes in the largest section

Based on recent sales of similar property, the fair market values of the three sections are as follows:

Section 1, $594,000

Section 2, $313,200

Section 3, $172,800

Required: 1. What value is assigned to each section of land if the tract was purchased for (a) $1,080,000, (b) $1,461,000, and (c) $814,000? Land Section 2: Cost Land Section 3: Cost Total Purchase Price Scenario Land Section 1: Cost Assigned Assigned Assigned a. $1,080,000 b. $1,461,000 $ $ c. $814,000 $