Question

If a company is considering the purchase of a parcel of land that was acquired by the seller for $102,000, is offered for sale at $184,000, is assessed for tax purposes at $112,000, is recognized by the purchaser as easily being worth $174,000, and is purchased for $171,000, the land should be recorded in the purchaser's books at:

Answer 1

$171,000

Step-by-step explanation:

Fixed assets should be recorded in the books of purchaser at [Actual cost of purchase + Additional expenses incurred related to purchase}. Here, land was purchased for $171,000. and no other additional expenses given. so it should be recorded at $171,000