Exercise 7-3A Allocate costs in a basket purchase (L07-1) Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair valu 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 Rock should record in the separate accounts for the land, the building, and the equipment. Allocation Percentage Amount of Basket Purchase Recorded Amount Estimated Fair Value Land Building Equipment % Total

Exercise 7-3A Allocate costs in a basket purchase (L07-1) Red Rock Bakery purchases land, building, and equipment for a single purchase price of $560,000. However, the estimated fair valu 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 Rock should record in the separate accounts for the land, the building, and the equipment. Allocation Percentage Amount of Basket Purchase Recorded Amount Estimated Fair Value Land Building Equipment % Total

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 53P

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