If a Company Is Considering the Purchase of a Parcel

question 196

Multiple Choice

If a company is considering the purchase of a parcel of land that was acquired by the seller for $85,000,is offered for sale at $150,000,is assessed for tax purposes at $95,000,is considered by the purchaser as easily being worth $140,000,and is purchased for $137,000,the land should be recorded in the purchaser's books at:

• A)$95,000.
• B)$137,000.
• C)$138,500.
• D)$140,000.
• E)$150,000.

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Definitions:

Environmental Uncertainty

The extent to which an organization lacks information about its external environment, making it difficult to predict future events or trends.

Environmental Impact

The effect or influence of human activities on the natural environment, including both negative and positive consequences.

External Environment

All outside factors and influences that impact the operation and performance of an organization, including economic, technological, sociocultural, and political factors.

Interest Groups

Collections of individuals or organizations that unite to promote and advocate for shared concerns or objectives.