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24 January, 00:06

If a company is considering the purchase of a parcel of land that was acquired by the seller for $94,000 is offered for sale at $168,000, is assessed for tax purposes at $104,000, is considered by the purchaser as easily being worth $158,000, and is purchased for $155,000, the land should be recorded in the purchaser's books at:

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  1. 24 January, 02:12
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    Complete Question:

    If a company is considering the purchase of a parcel of land that was acquired by the seller for $94,000, is offered for sale at $168,000, is assessed for tax purposes at $104,000, is recognized by the purchaser as easily being worth $158,000, and is purchased for $155,000, the land should be recorded in the purchaser's books at:

    Multiple Choice

    $155,000.

    $104,000.

    $158,000.

    $156,500.

    $168,000.

    Answer:

    Since the parcel of land is purchased by the company for $155,000, hence the land should be recorded in the purchaser's books at $155,000.

    Explanation:

    In case of a fixed asset, a debit of the property account, and a credit to cash or payable funds, or a note payable, based on whether it is a cash transaction, debt acquisition or default, are known as a balance sheet asset.

    A provision on the register of deeds and other land rights. Also the preference between parties seeking rights in the same property is decided by a recording statute. See the state of the team, state of a note and status of a non-alert (3 key categories of recordings).
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