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Allocate costs in a basket purchase
Red Rock Bakery purchases land, building, and equipment for a single purchase price of 5600,000. However, the estimated ',values of the land, building, and equipment are $175,000, tasspoo, and $70,000, respectively, for a total estimated fair value of $700,000.
RequireDetermine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.
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