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:

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as the production volume varies.

Total Product

The overall quantity of output that a firm produces, typically measured within a specific time period under given levels of input.

Marginal Cost

The additional cost incurred in the production of one more unit of a good or service.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, while holding other inputs constant.