Question

Guac Co. paid $350,000 for a purchase that included land, a building, and equipment. An appraiser estimated the market value of the land to be $80,000, the building to be $300,000, and the equipment to be $20,000. Based on this information recording the basket purchase in the accounting records would cause ______.

Answer 1

Step-by-step explanation:

The container buys are those in which gathering of advantages are gained beneath their reasonable market esteems. The advantages are constantly recorded on their price tag in this way honest assessment might be utilized for allotment of procurement cost in extent of their reasonable market esteems.

The reasonable market esteems won't influence asset report or bookkeeping condition hence unimportant right now.

Answer 2

No effect on balance sheet or accounting equation

Step-by-step explanation:

The basket purchases are those in which group of assets are acquired below their fair market values. The assets are always recorded on their purchase price therefore fair market value may be used for the sake of allocation of purchase cost in proportion of their fair market values.

The fair market values will not affect balance sheet or accounting equation therefore irrelevant in this question.