Acme Purchased a Property That Included Both Land and a Building

question 12

Multiple Choice

Acme purchased a property that included both land and a building for $200 000. Acme hired an appraiser who determined that the market value of the land was $140 000 and the market value of the building was $50 000. At what amount should Acme record the building cost?

• A)$52 632
• B)$200 000
• C)$140 000
• D)$147 368

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Definitions:

Total Revenue

The total amount of money received by a company for goods sold or services provided during a specific period.

Maximize Profits

The process of making the highest possible profit from business operations.

Relatively Inelastic

Describes a situation where the demand or supply of a good or service changes minimally in response to changes in price.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as production volume increases.