On December 1, 2012, Company X bought from Company Y land and an accompanying warehouse for $800,000.

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On December 1, 2012, Company X bought from Company Y land and an accompanying warehouse for $800,000. The fair market values of the land and the building at the time of purchase were $700,000 and $300,000, respectively. How much of the purchase price should Company X allocate to land? How much to the building?
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