Ask Question
10 April, 12:24

Burr Publishers purchased a building on March 20, 20Y1, for $160,000. Other amounts related to this purchase are as follows: Price listed by seller on January 1, 20Y1 $180,000 Burr Publishers' initial offer to buy on January 31, 20Y1 $140,000 Purchase price on March 20, 20Y1 $160,000 Estimated resale price on December 31, 20Y3 $220,000 Assessed value for property taxes, December 31, 20Y3 $190,000 Which of the following amounts should be recorded in the accounting records related to this purchase? 1. $220,000 2. $180,000 3. $160,000 4. $140,000

+4
Answers (1)
  1. 10 April, 13:44
    0
    3. $160,000

    Explanation:

    The fixed assets should be reported at purchase cost or historical price or acquired price at the time of recording of the fixed assets, since the building was purchased at $160,000 in the case and various other sums relevant to that purchase are also made.

    In addition, the value of the assessments for property taxes is also done, but the balance sheet would show at the purchase price i. e. $160,000 at the time of recording.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Burr Publishers purchased a building on March 20, 20Y1, for $160,000. Other amounts related to this purchase are as follows: Price listed ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers