Shoppers’ Market purchased for $245,000 a site onwhich it planned to build a new store. The site consistedof three acres of land and included an old house and twobarns. County property tax records showed the following appraised values for this property: land, $160,000; build-ings, $40,000. Indicate what Shoppers’ should do with this $245,000 cost in its financial statements, and explain yourreasoning.
Shoppers’ Market purchased for $245,000 a site onwhich it planned to build a new store. The site consistedof three acres of land and included an old house and twobarns. County property tax records showed the following appraised values for this property: land, $160,000; build-ings, $40,000. Indicate what Shoppers’ should do with this $245,000 cost in its financial statements, and explain yourreasoning.
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 42P
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Question
Shoppers’ Market purchased for $245,000 a site on
which it planned to build a new store. The site consisted
of three acres of land and included an old house and two
barns. County property tax records showed the following
appraised values for this property: land, $160,000; build-
ings, $40,000. Indicate what Shoppers’ should do with this
$245,000 cost in its financial statements, and explain your
reasoning.
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