During January of 2010, Barry Corporation Purchased Five Acres of Land

question 9

Short Answer

During January of 2010, Barry Corporation purchased five acres of land for cash of $110,000 from Foley Company. On December 31, 2010, after Barry built its plant, it was estimated that the land's fair market value was $140,000. At what amount would land be measured on Barry's December 31, 2010 balance sheet?

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Definitions:

Excavation

The process of removing soil, rock, or other materials from a site to form an open hole or cavity.

Purchase Discount

A reduction in price granted by a supplier to a buyer for early payment of an invoice.

Freight-In

The cost associated with transporting goods into a warehouse or to the buyer, often included in the inventory cost.