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Rom4ik [11]
4 years ago
7

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.
Business
1 answer:
Marta_Voda [28]4 years ago
5 0

Answer:

correct option is b. $159,000

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  

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5 0
2 years ago
For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance. Debit Effect
salantis [7]

Answer:

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A Bonds payable                    Decrease Increase  

b. Unearned Service Revenue Decrease Increase  

c. Depreciation Expense      Increase Decrease      

d. Common Stock                    Decrease Increase  

e. Buildings.                            Increase Decrease  

f. Rent Revenue.                   Decrease Increase  

 

Explanation:

Debit  Credit  

A Bonds payable Decrease Increase  

Bonds payable are a form of long term debt usually issued by corporations, hospitals, and governments.    

b. Unearned Service Revenue Decrease Increase  

Unearned Service Revenue is a liability account that is used to record advanced collections from clients. In other words, it pertains to revenue already collected but the service has not yet been rendered    

c. Depreciation Expense Increase Decrease  

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d. Common Stock Decrease Increase  

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f. Rent Revenue. Decrease Increase  

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7 0
3 years ago
Sales $ 1,000,000 Net income $ 45,000 Current Assets $ 50,000 Fixed Assets $ 200,000 Total Assets $ 250,000 Current Liabilities
marishachu [46]

Answer:

Profit Margin = income / sales

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Explanation:

*solving for equity

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250,000  =  130,000 + equity

equity = 120,000

5 0
4 years ago
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