Question

Carver Incorporated 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.

Answer 1

. The amount of the purchase cost that should be allocated to the land and building are as follows:

Land = $233,750

Building = $701,250

The company would not recognize a gain on the purchase but uses the appraised values to determine the costs to be allocated to the two assets.

c. Statements model:

 Balance Sheet                           Income   Statement                Statement of

                                                                                                       Cash Flows

Assets = Liabilities + Equity    Revenue - Expenses = Net Income

Cash            Land       Building  

($935,000) $233,750  $701,250  $0  -      $0          =       $0     ($935,000) IA

d. General Journal

Account Titles                   Debit       Credit

Land                             $233,750

Building                        $701,250

Cash                                              $935,000

Is a debit money in or out?

When your bank account is debited, money is taken out of the account.

The opposite of a debit is a credit, in which case money is added to your account.

Learn more about debit and credit here:

brainly.com/question/14283668

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