Nobells Inc

question 142

Multiple Choice

Nobells Inc. has acquired a property that included both land and a building for $500,000. The company hired an appraiser who has determined that the market value of the land is $300,000 and that of the building is $400,000. At what amount should the company record the cost of land?

• A)$147,368
• B)$52,632
• C)$250,000
• D)$214,286

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Definitions:

Absolute Value

A mathematical function that removes any negative sign in front of a number, effectively measuring the distance of the number from zero.

Correlation

A statistical measure that describes the extent to which two variables change together, but not necessarily indicating causation.

Prediction Error

The difference between observed values and the values predicted by a model.

Intercept

In mathematics and statistics, the point at which a line or curve intersects a given axis on a graph.