Seinfeld Company Has Land with an Original Cost of $70,000

question 11

Multiple Choice

Seinfeld Company has land with an original cost of $70,000 and a fair market value of $81,000. Seinfeld has considered selling its business next year and listing the land with a realtor for $100,000. At what amount would land be measured on the December 31, 2018 balance sheet?

• A)$100,000
• B)$81,000
• C)$15,000
• D)$70,000

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Definitions:

Persuasive Authority

Legal sources that a court may consider but are not binding, used to support arguments in absence of binding sources.

Precedent

An authoritative legal ruling or procedural method that sets a precedent for handling future cases that are similar or related.

Unanimous Opinion

A judicial decision or legal opinion in which all the judges or justices agree on the outcome and reasoning.

Memorandum

A written message or note, often informal, used within an organization or between organizations to communicate information.