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:

Lacks Validity

A term indicating that a measure or study does not accurately reflect or measure what it is supposed to.

Reliability

The degree to which a measurement, test, or instrument yields consistent results over time, contributing to its trustworthiness and accuracy.

Validity

The extent to which a test, measure, or research adequately reflects or assesses the specific concept it is intended to.

Indicators

Variables or metrics that are used to measure and evaluate specific processes, changes, or conditions in various contexts.