If the MRP of Land Is Less Than Its Price

question 130

Multiple Choice

If the MRP of land is less than its price, a firm should

• A) use more land.
• B) use less land.
• C) try to decrease the productivity of land.
• D) increase the price it is willing to pay for land.

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Definitions:

Loss on Disposal

The financial loss that occurs when the selling price of an asset is less than its carrying amount at the time of disposal.

Carrying Amount

Carrying amount, also known as book value, is the value of an asset as recorded in a company's books or financial statements, after accounting for depreciation and impairment losses.

Gain on Disposal

The profit earned from the sale of an asset, calculated as the sale proceeds minus the book value of the asset sold.

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.