ABC CoPurchased Land and Building at a Price of $480,000

question 14

Multiple Choice

ABC Co.purchased land and building at a price of $480,000.ABC also incurred a real estate broker's fee of $5,000 and legal fees of $2,000 to complete the purchase.ABC paid $3,000 to obtain a real estate appraisal prior to the purchase.The appraisal indicated that,valued separately,the land was worth $260,000 and the building was worth $240,000.The land should be recorded in the accounting records for:

• A)$249,600.
• B)$253,240.
• C)$254,800.
• D)$259,600.

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Definitions:

Nonconventional

Refers to methods, ideas, or practices that do not conform to the accepted or traditional standards.

Postconventional

A level of moral reasoning in Kohlberg's theory, characterized by an understanding that morals and ethics are guided by universal principles and internal belief systems rather than societal or authority-based rules.

Postconventional

A level of moral reasoning in Kohlberg's theory characterized by the application of ethical principles and personal conscience over societal rules.

Moral Reasoning

The process of determining what is right or wrong in a given situation by applying ethical principles.