Question

work Instructions help Question 7 (of 14) ® Serve & Exit Submit value: 5.00 points Red Rock Bakery purchases land, building, and equipment for a single purchase price of $420,000. However,the estimated fair values of the land, building, and equipment are $130,000, $312,000, and $78,000, respectively, for a total estimated fair value of $520,000. Required: Determine the amounts Red Rock should record inade separate accounts for the land, the building, and the equipment Amount of Recorded Estimated Fair Allocation Basket Value Land Building Equipment S420,000S32,500 187.200 11,700 S 231,400 s 130,000 312,000 78.000| S 520,000 32.5001% 187,200 1% 11.700 | 96 420,000 420,000 Total Hints References eBook& Resources Hint 81 Ad 706 PM

Answer 1

	Estimated fair value	Allocation percentage	Amount of basket purchase	Recorded amount
Land	130000	25%	420000	105000
Building	312000	60%	420000	252000
Equipment	78000	15%	420000	63000
Total	520000	100%		420000