Asked by Nurul Ainaa on Jul 08, 2024
Verified
A parcel of land is offered for sale at $600,000,is assessed for tax purposes at $500,000,is recognized by its purchasers as easily being worth $575,000,and is sold for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?
Accounting Principle
A rule or guideline that governs the financial reporting and accounting practices of a business.
Purchaser's Books
Records maintained by the buyer detailing purchases, expenses, and payables, essential for managing and tracking financial transactions.
Parcel of Land
A defined piece of land, identified for legal or development purposes, that can be owned, sold, or developed.
- Comprehend the basic concepts of accounting, which encompass the going concern assumption as well as the business entity assumption.
Verified Answer
JB
joana bonillaJul 12, 2024
Final Answer :
$570,000.The Measurement (Cost)principle requires the acquisition of an asset to be recorded in the accounting records at cost.
Learning Objectives
- Comprehend the basic concepts of accounting, which encompass the going concern assumption as well as the business entity assumption.