Red rock bakery purchases land building and equipment for a


Question: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $400,000. However, the estimated fair values of the land, building, and equipment are $150,000, $300,000, and $50,000, respectively, for a total estimated fair value of $500,000.

Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.

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