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natka813 [3]
3 years ago
7

Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land

to be $220,000. Focus Company initially offered to buy the land for $177,000. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $232,000. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company?
a. $232,000
b. $212,000
c. $220,000
d. $177,000
Business
1 answer:
iris [78.8K]3 years ago
7 0

Answer:

b. $212,000

Explanation:

The cost concept entails the initial recognition of an asset at the historical cost or actual cost of purchase.

For Focus company, the amount to be recorded for the land purchased from Donner company using the cost concept is not the market value of the land at $220,000 nor the initial offered price of $177,000.

The cost of another piece of land on the same block sold for $232,000 is also not the amount but the actual cost paid for the property which is $212,000.

Hence the right option is b. $212,000.

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Oriole Company sells merchandise on account for $7800 to Sunland Company with credit terms of 2/13, n/30. Sunland Company return
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Answer:

a. $6468

Explanation:

Calculation for the amount of the check

Based on the information given we were told that Oriole Company sells merchandise on account for the amount of $7800 to Sunland Company with credit terms of 2/13, n/30 in which Sunland Company returns the amount of $1200 of merchandise that was damaged which means that the amount of the check will be calculated as:

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If other things are held constant, an increase in the United States imports will
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On January 1, 2020, Hage Corporation granted incentive stock options to purchase 26,000 of its common shares at $7 each. The opt
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Answer:

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