Question

On June 25, Snap Repair Service extended an offer of $170,000 for land that had been priced for sale at $194,000. On July 9, Snap Repair
Service accepted the seller's counteroffer of $185,000. On October 1, the land was assessed at a value of $278,000 for property tax purposes. On
December 22, Snap Repair Service was offered $296,000 for the land by a national retail chain,
At what value should the land be recorded in Snap Repair Service's records?

Answer 1

Answer: $185000

Explanation:

The value that the land should be recorded in Snap Repair Service's records is at the price of $185000 which is the counteroffer

This is because this is the price that Snap Repair Services paid to get the land. The accounting for the land purchased is a land cost and will be recorded accordingly.