Consecutive balance sheets of Crow Ltd showed the following balances: 30 June 2019 30 June 2018 Land $850,000 Asset revaluation surplus $150,000 $500,000 During the year ended 30 June 2019, the land was revalued upwards by $150,000, and $120,000 was borrowed to acquire land. What was the value of land purchased for cash? a $270,000 b. $200,000 c. $80,000 d. $355,000 e. $350,000

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 12P
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General Accounting

Consecutive balance sheets of Crow Ltd showed the following
balances:
30 June 2019 30 June 2018
Land
$850,000
Asset revaluation surplus $150,000
$500,000
During the year ended 30 June 2019, the land was revalued upwards
by $150,000, and $120,000 was borrowed to acquire land.
What was the value of land purchased for cash?
a $270,000
b. $200,000
c. $80,000
d. $355,000
e. $350,000
Transcribed Image Text:Consecutive balance sheets of Crow Ltd showed the following balances: 30 June 2019 30 June 2018 Land $850,000 Asset revaluation surplus $150,000 $500,000 During the year ended 30 June 2019, the land was revalued upwards by $150,000, and $120,000 was borrowed to acquire land. What was the value of land purchased for cash? a $270,000 b. $200,000 c. $80,000 d. $355,000 e. $350,000
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