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Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,282. Focus Company inibally offered to buy the land for $180,112. The companies settled on a purchase price of $208,521. On the same day, another piece of land on the same block sold for $239,095. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? O. $708521 Ox $106,112 O $110 O & 5774,762

Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,282. Focus Company inibally offered to buy the land for $180,112. The companies settled on a purchase price of $208,521. On the same day, another piece of land on the same block sold for $239,095. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? O. $708521 Ox $106,112 O $110 O & 5774,762

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,282. Focus Company initially offered to buy the land for $180,112. The companies settled on a purchase price of $208,521 On the same day, another piece of land on the same block sold for $239,095. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? O $208521 Ok $106,113 O $219,095 Od 5220.207
Transcribed Image Text:Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,282. Focus Company initially offered to buy the land for $180,112. The companies settled on a purchase price of $208,521 On the same day, another piece of land on the same block sold for $239,095. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? O $208521 Ok $106,113 O $219,095 Od 5220.207
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