Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $95,239. The Focus Company initially offered to buy the land for $108,852. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $102,714. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company? a.$102,714 b.$95,239 c.$212,000 d.$108,852
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $95,239. The Focus Company initially offered to buy the land for $108,852. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $102,714. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company? a.$102,714 b.$95,239 c.$212,000 d.$108,852
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 23MC: A company purchased a building twenty years ago for $150,000. The building currently has an...
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Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $95,239. The Focus Company initially offered to buy the land for $108,852. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $102,714. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company?
a.$102,714b.$95,239c.$212,000d.$108,852
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