Land Was Acquired in 2009 for a Future Building Site

question 62

Multiple Choice

Land was acquired in 2009 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at:

• A)$40,000.
• B)$27,000.
• C)$46,000.
• D)$48,000.

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Definitions:

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of parameters.

Graduate School

A division of a university offering advanced programs beyond the bachelor's degree, leading to a master's or doctoral degree.

Continuous Random

A variable that can take an infinite number of values within a given range, representing quantities that can be subdivided into infinitely smaller increments.

Numerical Value

A representation of a quantity or an amount in the form of numbers as opposed to qualitative descriptions.