Question

Red Rock Bakery purchases land, building, and equipment for a single purchase price of $900,000. However, the estimated fair values of the land, buildings, and equipment are $150,000, $600,000, and $250,000, respectively, for a total estimated fair value of $1,000,000.

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



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  • CreatedJuly 15, 2014
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