9781337272322 9781337272322 9781337272322 9781337272322 gnme

gnment/takeAssign takeAssignment Session ocator . assignment-take &nprogress-false; Cest Concept On February 3, Clairemont Repar Service extended an offer of $360,000 for land that had been prniced for sale at $400,000. On February 2, Clarement Repair Service accepted the sel r\'s counteroffer of $300,000·0n October 23, the land was assessed at a value er sna000 for property ta\' purposes. O.nary 15 of net ve\" areort Repar seen fered $450 000 g the land by a national retal chain the land be recorded in Clarement Repar Service\'s recerds

Solution

Ans is $380,000.

Explanation: Under the cost concept, the land should be recorded at the cost to Clairemont Repair Service. In the financial accounting its prescribed that asset should be recorded in books at historical cost less any depreciation charged since land doesn’t qualify for any depreciation it should be recorded at its purchase price of $380,000. Its current market value or property tax value is only relevant at the time of tax assessment or actual sale, for recording purposes only cost of purchase can be shown.