6. a. A business worth $ 900,000 purchased on land with an appraised value of $ 750,000 for property taxes. Ten years later, the parcel has an estimated value of $ 1,200,000 and the company receives an offer of $ 2,000,000 for it. Should I now increase the monetary amount allocated to land in business records? yes. Assuming that the land acquired in (a) was sold for $ 2,125,000, how would the various elements of the accounting equation be affected?
6. a. A business worth $ 900,000 purchased on land with an appraised value of $ 750,000 for property taxes. Ten years later, the parcel has an estimated value of $ 1,200,000 and the company receives an offer of $ 2,000,000 for it. Should I now increase the monetary amount allocated to land in business records? yes. Assuming that the land acquired in (a) was sold for $ 2,125,000, how would the various elements of the accounting equation be affected?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter2: Basic Accounting Systems: Cash Basis
Section: Chapter Questions
Problem 6CDQ: Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an...
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6. a. A business worth $ 900,000 purchased on land with an appraised value of $ 750,000 for property taxes. Ten years later, the parcel has an estimated value of $ 1,200,000 and the company receives an offer of $ 2,000,000 for it.
Should I now increase the monetary amount allocated to land in business records? yes. Assuming that the land acquired in (a) was sold for $ 2,125,000, how would the various elements of the accounting equation be affected?
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