Merchant Company purchased land for a building site. The costs associated with the property were: Purchase price Real estate commissions Legal fees Expenses of clearing the land What is the total recorded cost of the land? Multiple Choice $208,400 $203.200 $187,000 $ 187,000 16,200 2,000 3,200

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Merchant Company purchased land for a building site. The costs associated with the property were:
$ 187,000
16,200
2,000
3,200
Purchase price
Real estate commissions
Legal fees.
Expenses of clearing the land
What is the total recorded cost of the land?
Multiple Choice
$208,400
$203,200
$187,000
$205.200
Transcribed Image Text:Merchant Company purchased land for a building site. The costs associated with the property were: $ 187,000 16,200 2,000 3,200 Purchase price Real estate commissions Legal fees. Expenses of clearing the land What is the total recorded cost of the land? Multiple Choice $208,400 $203,200 $187,000 $205.200
An asset's book value is $20,000 on December 31, Year 5, Assuming the asset is sold on December 31, Year 5 for $13,000, the company should record:
Multiple Choice
A loss on sale of $7,000
A gain on sale of $12,500.
Neither a gain nor a loss is recognized on this transaction
A gain on sale of $7,000
A loss on sale of $12.500
Transcribed Image Text:An asset's book value is $20,000 on December 31, Year 5, Assuming the asset is sold on December 31, Year 5 for $13,000, the company should record: Multiple Choice A loss on sale of $7,000 A gain on sale of $12,500. Neither a gain nor a loss is recognized on this transaction A gain on sale of $7,000 A loss on sale of $12.500
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