contestada

Teshin Co. purchases a piece of land with several land improvements for $180,000. The land appraises at $120,000 and the land improvements appraise at $80,000. The land should be recorded at what cost?

Respuesta :

ijaz4308

Answer:

$108,000

Explanation:

The land shall be recorded at the following cost in the accounts of Teshin Co.:

Cost of land=(appraised value of land/appraised value of land and improvements)*purchase price of land with several land improvements

Appraised value of land=120,000

Appraised value of land and improvements=120,000+80,000=200,000

Purchase price of land with several improvements=$180,000

Cost of land to be recorded=(120,000/200,000)*180,000

                                              =$108,000