Red rock bakery purchases land building and equipment for a


Red Rock Bakery purchases land, building, and equipment for a single purchase price of $580,000. However, the estimated fair values of the land, buildings, and equipment are $204,000, $408,000, and $68,000, respectively, for a total estimated fair value of $680,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.

Estimated Fair Value:

Land:

Building:

Equipment:

Total

Allocation Percentage

Land:

Building:

Equipment:

Total:

Amount of Basket Purchase

Land:

Building:

Eqipment:

Total:

Recorded Amount

Land:

Building:

Equipment:

total:

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Financial Accounting: Red rock bakery purchases land building and equipment for a
Reference No:- TGS01694711

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