Shidan Apartments Purchased an Apartment Building to Rent to University

question 160

Multiple Choice

Shidan Apartments purchased an apartment building to rent to university students on November 18, 2016.The following costs were incurred during 2016, before the tenants moved in: $$\begin{array} { l r } \text { Purchase price of the building } & \$ 220,000 \\\text { Purchase price of the land } & 100,000 \\\text { Transfer taxes } & 10,000 \\\text { Interest incurred on the mortgage loan to purchase } & 4,000 \\\text { Attorney and real estate agent's fees } & 15,000 \\\text { Repave the parking lot } & 6,000\end{array}$$ ? How much will Shidan Apartments record as an asset?

• A) $320,000
• B) $345,000
• C) $351,000
• D) $355,000

---

Definitions:

Argumentum Ad Hominem

A logical fallacy that occurs when an argument is rebutted by attacking the character, motive, or other attribute of the person making the argument, rather than addressing the substance of the argument itself.

Gambler's Fallacy

The erroneous belief that if an event happens more frequently than normal during a past period, it will happen less frequently in the future, or vice versa.

Sunk Cost Fallacy

The misconception that one should continue an endeavor because of previously invested resources (time, money, effort) even if current costs outweigh the benefits.

Reductio Ad Absurdum

A logical argument technique where a proposition is disproven by following its implications to an absurd consequence.