The citys electric utility foreclosed on a ski resort that f

The city\'s electric utility foreclosed on a ski resort that failed to pay its electricity bills for the past 5 ski seasons due to financial problems. The fair market value of the ski resort at the time of foreclosure was $1,000,000. The past due taxes on the property totaled $150,000. The city plans to retain the ski resort and operate it itself. The ski resort should be recorded in the General Capital Assets accounts in the amount of

A. $0.

B. $150,000

C. $1,000,000

D. $1,150,000

Solution

It should be Fair market value+Taxes due 1000000+150000 1150000 Correct option d) $1150000 If any doubt please comment