Bachman Company Plans to Develop a Shopping Center What Amount Should Be Recorded as the Cost of the Quarter,the

question 168

Multiple Choice

Bachman Company plans to develop a shopping center.In the first quarter,the following amounts were spent:
$$\begin{array} { | l | r | } \hline \text { Acquisition of land } & \$ 24,000 \\\hline \text { Surveys and legal fees } & 1500 \\\hline \text { Land clearing } & 1100 \\\hline \text { Fencing } & 6000 \\\hline \text { Install lighting and signage } & 1860 \\\hline\end{array}$$ What amount should be recorded as the cost of the land in the company's books?

• A) $32,600
• B) $26,600
• C) $28,460
• D) $31,100

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Definitions:

Rescission

The act of cancelling a contract, returning all parties to their pre-contractual state, often due to mistakes, fraud, or misrepresentation.

Fraudulent Misrepresentation

False statements or claims made deceitfully to induce another party into a contract, leading to harm or loss.

Undue Influence

Excessive pressure or influence applied by one individual over another to force actions or decisions unjustly.

Foreclosure

A court process ending the mortgagor’s right to redeem.