A Building with an Appraisal Value of $154,000 Is Made

question 103

Multiple Choice

A building with an appraisal value of $154,000 is made available at an offer price of $172,000.The purchaser acquires the property for $40,000 in cash,a 90-day note payable for $45,000,and a mortgage amounting to $75,000.The cost basis recorded in the buyer's accounting records to recognize this purchase is

• A)$160,000
• B)$120,000
• C)$172,000
• D)$154,000