On June 25, Obermayer Repair Service extended an offer of $116,000 for land that had been priced for sale at $132,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $126,000. On October 1, the land was assessed at a value of $189,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $202,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?
On June 25, Obermayer Repair Service extended an offer of $116,000 for land that had been priced for sale at $132,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $126,000. On October 1, the land was assessed at a value of $189,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $202,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On June 25, Obermayer Repair Service extended an offer of $116,000 for land that had been priced for sale at $132,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $126,000. On October 1, the land was assessed at a value of $189,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $202,000 for the land by a national retail chain.
At what value should the land be recorded in Obermayer Repair Service's records?
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