If a Company Is Considering the Purchase of a Parcel

question 137

Multiple Choice

If a company is considering the purchase of a parcel of land that was originally acquired by the seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at:

• A)$95,000.
• B)$137,000.
• C)$138,500.
• D)$140,000.
• E)$150,000.

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Definitions:

Outrageous

Describes actions or behaviors that are shocking, extreme, and exceed the bounds of decency in a societal context.

Law of Torts

A branch of civil law that deals with legal liabilities, obligations, and damages arising from wrongful acts not involving contracts.

Statutory Law

Law enacted by a legislative body, such as a Congress or Parliament, that specifies and mandates behaviors, procedures, and consequences within its jurisdiction.

Qualified Privilege

A legal defense in defamation cases allowing freedom of expression without liability, provided the statements are made without malice on occasions where the party has a legal, moral, or social duty to make them.