In Year 2,the Denim Company Bought an Acre of Land

question 140

Multiple Choice

In Year 2,the Denim Company bought an acre of land that cost $15,000.In Year 5,another company purchased a nearby acre of land for $28,000 and a different company purchased another nearby acre of land for $26,000.As a result,an appraiser estimated that the acre owned by Denim had increased in value to $27,000.If Denim prepares a balance sheet at the end of Year 5,the acre of land that it owns should be reported at:

• A)$15,000.
• B)$28,000.
• C)$27,000.
• D)the average of all of the amounts.

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Definitions:

Diluting

The process of reducing the concentration of a solute in a solution, usually by adding more solvent.

Molarity

An indicator of solute density within a solution, measured in moles per liter of the solution.

NaCl

Sodium chloride, commonly known as table salt, an ionic compound formed from the chemical reaction between sodium and chlorine.

Molarity

A concentration measurement defined as the moles of a solute per liter of solution.