Question

On June 25, McCade Repair Service extended an offer of $93,000 for land that had been priced for sale at $106,000. On July 9, McCade Repair Service accepted the seller's counteroffer of $101,000. On October 1, the land was assessed at a value of $152,000 for property tax purposes. On December 22, McCade Repair Service was offered $162,000 for the land by a national retail chain.

At what value should the land be recorded in McCade Repair Service's records?

Answer 1

The land should be recorded at $101,000 in McCade Repair Service's records.

Step-by-step explanation:

The value of the land should be recorded at $101,000 in McCade Repair Service's records. This is because on July 9, McCade Repair Service accepted the seller's counteroffer of $101,000, which became the agreed-upon price for the land. The subsequent assessments and offers made after that do not impact the value at which the land should be recorded.