The Portion of a Group Purchase of Land and a Buildup

question 191

Multiple Choice

The portion of a group purchase of land and a buildup for $648,000 allocated to land,when the land is appraised at $170,000 and the building on the land is appraised at $510,000 is

• A) $496,000.
• B) $162,000.
• C) $172,000.
• D) $486,000.

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Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, impacting the equity and long-term debt of an entity.

Common Stock

A type of security that denotes ownership in a corporation and represents a claim on part of the corporation's profits or losses.

Cash Flow Statement

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not considered as cash equivalents by a company.