Consecutive Balance Sheets of Crow Ltd Showed the Following Balances

question 21

Multiple Choice

Consecutive balance sheets of Crow Ltd showed the following balances: During the year ended 30 June 2019, land was revalued upwards by $120 000, and $80 000 was borrowed to acquire land. What was the value of land purchased for cash?

• A) $50 000
• B) $130 000
• C) $170 000
• D) None of the above

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Definitions:

Equity

Fairness or justice in the way people are treated or in the distribution of resources.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is not achievable.

Excise Taxes

Taxes imposed on specific goods or services, such as tobacco or alcohol, typically aimed at reducing consumption of these goods or raising revenue.

Inelastic Demand

Inelastic demand refers to a market condition where the quantity demanded of a good or service changes very little in response to price changes.