Question

If a company is considering the purchase of a parcel of land that was acquired by the seller for $96,000 is offered for sale at $172,000, is assessed for tax purposes at $106,000, is recognized by the purchaser as easily being worth $162,000, and is purchased for $159,000, the land should be recorded in the purchaser's books at:a. $106,000. b. $159,000. c. $160,500. d. $162,000. e. $172,000.

Answer 1

correct option is b. $159,000

Step-by-step explanation:

given data

purchase land = $96,000

offer sale = $172,000

assessed for tax purposes = $106,000

recognized purchaser worth = $162,000

purchased = $159,000

solution

we know that when we purchase a parcel of land then

the price paid for by the purchaser is the amount and that amount is to be recorded in the books

so that land will record in the purchaser books is $159,000

so correct option is b. $159,000