Answer:
Land, $65,625 and Garage, $39,375
Step-by-step explanation:
The allocation would be done using the fair market values as basis. Fair market value is more appropriate as a basis instead of using the sizes of the building and the garage as basis.
Total fair market values = $125,000 + $200,000 + $75,000 = $400,000
Total amount paid for all assets = $210,000
Amount allocated to each asset =

Amount allocated to land =

= $65,625
Amount allocated to warehouse =

= $105,000
Amount allocated to garage =

= $39,375