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bearhunter [10]
4 years ago
14

A building with an appraisal value of $154,000 is made available at an offer price of $172,000. The purchaser acquires the prope

rty for $40,000 in cash, a 90-day note payable for $45,000, and a mortgage amounting to $75,000. The cost basis recorded in the buyer's accounting records to recognize this purchase isA. 154,000
B. 172,000

C. 160,000

D. 120,000
Business
1 answer:
swat324 years ago
5 0

Answer:

Option (C) 160,000

Explanation:

Data provided in the question:

Appraisal value = $154,000

Offer price = $172,000

Cash = $40,000

Note payable = $45,000

Mortgage amount = $75,000

Now,

Cost basis recorded in the buyer's accounting records to recognize this purchase will be

=  Cash + Note payable + Mortgage amount

= $40,000 + $45,000 + $75,000

= $160,000

Hence,

Option (C) 160,000

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