Question

Equipment with an estimated market value of $55,000 is offered for sale at $75,000. The equipment is acquired for $20,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is ________.

Answer 1

Answer:

The amount used in the buyer's accounting records to record this acquisition is $60,000.

Explanation:

Amount in the buyer's accounting records to record this acquisition = Cash paid + Note payable

= $20,000 + $40,000

= $60,000

Therefore, The amount used in the buyer's accounting records to record this acquisition is $60,000.