Nobells Ltd Purchased a Property That Included Both Land and a Building

question 56

Multiple Choice

Nobells Ltd purchased a property that included both land and a building for $570,000.The company hired an appraiser who has determined that the market value of the land is $380,000 and that of the building is $430,000.At what amount should the company record the cost of land?

• A)$158,421
• B)$66,667
• C)$267,407
• D)$285,000

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Definitions:

Foreign Investments

Investments made by individuals, companies, or governments in business interests located in another country, outside of the investor's own country.

Globalization

The process by which businesses, cultural concepts, or technologies spread worldwide, leading to increased interconnectedness and interdependence among the world's economies, cultures, and populations.

McDonaldization

A concept that describes the process by which principles of the fast-food industry, like efficiency, predictability, and control, dominate other sectors of society.

Global Poverty

The condition where individuals or communities lack the financial resources to meet basic living standards around the world.