Question

Arrow Inc was incorporated in 1904. Land was purchased at that time for $10K. This same land would be carried on the balance sheet of Arrow Inc in 2004 as $10K

a)True
b)False

Answer 1

Arrow Inc would carry the same land on its balance sheet in 2004 at $10K. True.

Step-by-step explanation:

The statement is True. When a company purchases land, it is recorded as an asset on the balance sheet. The land's value is typically recorded at its original purchase price, unless it has been revalued or impaired.