Land was acquired in 2009 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at:
A)$40,000.
B)$27,000.
C)$46,000.
D)$48,000.

Question

Quizplus · Accepted Answer

Land should be reported at its historical cost, which is the amount paid for it, $40,000.

Land Was Acquired in 2009 for a Future Building Site