Question

A company purchased property for $300,000. The property included an acre of land valued at $50,000, a building valued at $150,000, and equipment valued at $125,000. The building will be recorded at a cost of:_______

a. $150,000.
b. $140,000.
c. $135,000.
d. $138,461.

Answer 1

The cost of the building is $150,000. This is because the company purchased the property for $300,000, and the land is valued at $50,000 while the equipment is valued at $125,000. To find the cost of the building, we subtract the value of the land and equipment from the total purchase price.

Step-by-step explanation:

The cost of the building is $150,000. This is because the company purchased the property for $300,000, and the land is valued at $50,000 while the equipment is valued at $125,000. To find the cost of the building, we subtract the value of the land and equipment from the total purchase price:

$300,000 - $50,000 - $125,000 = $125,000