If a Company Is Considering the Purchase of a Parcel

question 109

Multiple Choice

If a company is considering the purchase of a parcel of land that was 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.

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Definitions:

Economic Thought

The study and contemplation of various theories, models, and approaches regarding the functioning of economies and economic behavior.

Economic Thought

The progression and development of ideas and theories about how economies operate, evolving over time from ancient to modern paradigms.

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An economic theory advocating for minimal government intervention in the market, emphasizing free-markets and the idea that markets naturally tend towards equilibrium.

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