Answer:
The amounts to be recorded land, building, and equipment are $70,000, $120,000, and $10,000, respectively.
Explanation:
Purchase price of land, building, and equipment = $200,000
Estimated fair values of;
Land = $105,000
Building = $180,000
Equipment = $15,000
Total estimated fair value = $300,000
Amount to be recorded in the books of Red Rock Bakery for;
Land = ($105,000/$300,000) × $200,000
= $70,000
Building = ($180,000/$300,000) × $200,000
= $120,000
Equipment = ($15,000/$300,000) × $200,000
= $10,000
The amounts to be recorded land, building, and equipment are $70,000, $120,000, and $10,000, respectively.
