A Plot of Land Was Purchased for $120,000 Which Had

question 69

Multiple Choice

A plot of land was purchased for $120,000 which had $10,000 of past due property taxes on it.Sales taxes on the purchase were $1,400 and the title search cost $500.The capitalized cost of the land was:

• A)$120,000
• B)$121,900
• C)$130,000
• D)$131,900

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Definitions:

System II

A cognitive unit or system in psychology that is responsible for deliberate, analytical, and effortful decision-making processes.

Confirmation Bias

The tendency to take evidence that’s consistent with your beliefs more seriously than evidence inconsistent with your beliefs.

Availability Heuristic

The availability heuristic is a cognitive bias that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut that people use to classify something as belonging to a certain category based on how similar it is to a typical case from that category.