An office building is appraised for $250,000 and offered for sale at $260,000. The buyer pays $245,000 for the building. The building should be recorded on the books of the buyer at:
A)$250,000.
B)$260,000.
C)$245,000.
D)some other amount.

Question

Quizplus · Accepted Answer

The building should be recorded at the amount it was actually purchased for, which is $245,000. The appraised value and the offering price are irrelevant as they do not reflect the actual transaction that took place.

An Office Building Is Appraised for $250,000 and Offered for Sale