Red Rock Bakery purchases land, building, and equipment for a single purchase price of $400,000. However, the

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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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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780078110825

2nd Edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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