Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $89,426. The Focus Company initially offered to buy the land for $109,576. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $103,453. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company? a.$103,453 b.$212,000 c.$109,576 d.$89,426
Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $89,426. The Focus Company initially offered to buy the land for $109,576. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $103,453. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company? a.$103,453 b.$212,000 c.$109,576 d.$89,426
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $89,426. The Focus Company initially offered to buy the land for $109,576. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $103,453. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company?
a.$103,453
b.$212,000
c.$109,576
d.$89,426
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