Question

If a company is considering the purchase of a parcel of land that was acquired by the seller for $97,000 is offered for sale at $174,000, is assessed for tax purposes at $107,000, is considered by the purchaser as easily being worth $164,000, and is purchased for $161,000, the land should be recorded in the purchaser's books at:

Answer 1

Answer:

$161,000

Explanation:

Based on the information given in a situation where the company is considering the purchase of a land which we were told was acquired by the seller for the amount of $97,000 which means that if the percel of land was later purchased for the amount of $161,000, the land should be recorded in the purchaser's books at $161,000 which was the land purchased amount.

Therefore the land should be recorded in the purchaser's books at:$161,000