A Company Purchased Property for $300,000

question 222

Multiple Choice

A company purchased property for $300,000. The property included an acre of land valued at $50,000, a building valued at $150,000, and equipment valued at $125,000.
-The land will be recorded at a cost of

• A) $45,000.
• B) $48,234.
• C) $46,154.
• D) $50,000.

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Definitions:

Scalable Business Model

A business model designed to allow growth and expansion without significant increases in costs or complexity.

Temporary Organization

A group or entity established with a specific end goal or time frame, ceasing to exist once its purpose has been fulfilled or the project is completed.

Serial Entrepreneurship

The practice of starting multiple businesses over time, often after the initial ventures have been established, sold, or ceased operation.

Virgin Group

A British multinational venture capital conglomerate founded by Sir Richard Branson, known for its diverse investment in sectors like travel, entertainment, and telecommunications.