Question

A building with an appraisal value of $167,000 is made available at an offer price of $162,000. The purchaser acquires the property for $25,000 in cash, a 90-day note payable for $75,000, and a mortgage amounting to $65,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is: Group of answer choices $167,000 $140,000 $162,000 $165,000

Answer 1

Answer:

$165,000

Explanation:

Given that

The appraisal value is = $167,000

The offer price = $162,000

Acquiring value of property = $25,000

Note Payable amount = $75,000

Mortgage Amount = $65,000

So, The computation of recognize this purchase is as follows:-

= Acquiring value + Payable amount + Mortgage Amount

= $25,000 + $75,000 + $65,000

= $165,000