Red River Bakery purchases land, building, and equipment for a single purchase price of $200,000. However, the estimated fair values of the land, building, and equipment are $105,000, $180,000, and $15,000, respectively, for a total estimated fair value of $300,000. Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment. Land Building Equipment Total Estimated Fair Value $ $ 105,000 180,000 15,000 300,000 Allocation Percentage % % L.% Amount of Basket Purchase Recorded Amount $ 0

Red River Bakery purchases land, building, and equipment for a single purchase price of $200,000. However, the estimated fair values of the land, building, and equipment are $105,000,$180,000, and $15,000, respectively, for a total estimated fair value of $300,000 Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment. Exercise 7.3 (Algo) Allocate costs in a basket purchase (LO7-1) Red River Bakery purchases land, building, and equipment for a single purchase price of $200,000. However, the estimated fair values of the land, building, and equipment are $105,000,$180,000, and $15,000, respectively, for a total estimated fair value of $300,000 Required: Determine the amounts Red River should record in the separate accounts for the land, the building, and the equipment