Red rock bakery purchases land, building, and equipment for a single purchase price of $320,000. however, the estimated fair values of the land, building, and equipment are $147,000, $252,000, and $21,000, respectively, for a total estimated fair value of $420,000. required: determine the amounts red rock should record in the separate accounts for the land, the building, and the equipment.

land              112,000 debit

building       192,000 debit

equipment     16,000 debit

        Cash                          320,000 credit

Explanation:

We will add each fair value and calculate the weight of each concept:

land              147,000 --> 147,000/420,000  = 35%

building      252,000 --> 252,000/420,000 = 60%

equipment     21,000  --> 21,000 / 420,000 =   5%

total             420,000

Now we assign this weight ot the lump used to acquire the assets:

land:           320,000 x 35% =  112,000

building      320,000 x 60% = 192,000

equipment: 320,000 x 55% =   16,000

answer; i believe the correct answer is (75 years);

the answer is account d