If a company is considering the purchase of a parcel of land that was originally acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at:
A)$95,000.
B)$137,000.
C)$138,500.
D)$140,000.
E)$150,000.

Question

Quizplus · Accepted Answer

The land should be recorded at the purchase price of $137,000.

If a Company Is Considering the Purchase of a Parcel