Basket purchase allocation Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $255,000. The appraised value of the land is s60,000, and the appraised value of the building is $240,000. Required ssn e buliding is to be usedin Dorsey Co s business civites, what cost shoud b. Explain why, for income tax purposes, management of Dorsey Co. would want as little of the purchase price as possible allocated to land. c. Explain why Dorsey Co.allocated the c the purchase date rather than on the original cost of the land and building to Bibb Co. d. Assuming that the building is demolished at a cost of $20,000 so that the land can be used for employee parking, what cost should Dorsey Co. record for the land? of assets acquired based