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Carolina Company purchased a building and the land on which the building is situated for...

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Accounting

Carolina Company purchased a building and the land on which the building is situated for a total cost of $963,400 cash. The land was appraised at $243,740 and the building at $864,170. Required a. What is the accounting term for this type of acquisition? Basket purchase Building purchase Bulk purchase Bundle purchase Equipment purchase Lot acquisition b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. (Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.) c. Would the company recognize a gain on the purchase? Yes No d. Record the purchase in a statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). The letters NA indicate that an element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign. Round intermediate calculations to 2 decimal places and final answers to the nearest whole number.)

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