Advanced automotive pays $ 320 comma 000 for a group purchase of land, building, and equipment. at the time of acquisition, the land has a current market value of $ 70 comma 000, the building's current market value is $ 35 comma 000, and the equipment's current market value is $ 245 comma 000. prepare a schedule allocating the purchase price of $ 320 comma 000 to each of the individual assets purchased based on their relative market values, then journalize the lump-sum purchase of the three assets. the business signs a note payable for the purchase price.

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.