Final answer:
The correct answer is option A. Savings Mart should record the donated land at the appraisal value at the time of the donation, which is $332,000. This is the fair market value and adheres to accounting standards for recording non-monetary donations.
Step-by-step explanation:
When a company receives a non-monetary donation of an asset such as land, the accounting principle commonly used is to record the asset at its fair market value. In the scenario where Savings Mart received a 20-acre tract of land from the city of Populationville, the land should be recorded at the appraisal value at the time of the donation, rather than at the original purchase price or not be recorded at all.
Therefore, Savings Mart should record the donated land at its appraisal value of $332,000. This appraised value reflects the current fair market value of the land, which is the amount a buyer would be willing to pay for it in an arm's length transaction. The original purchase price of $282,000 three years ago is irrelevant to the current value. Additionally, per accounting standards, donated assets should indeed be recorded on the recipient's books, so an entry of $0 is not appropriate in this case.
In conclusion, the correct amount at which Savings Mart should record the donated land is Option A: $332,000. This reflects the most accurate and up-to-date valuation of the land received as a donation.