Shorecrest Company Recently Accepted a Donation of Land with a Fair

question 14

Multiple Choice

Shorecrest Company recently accepted a donation of land with a fair value of $250,000 from the city of Sutton in return for a promise to build a plant in Sutton. The entry that Shorecrest should use to record this land is:

• A) Land..............................250,000
• Donated Capital-Land 250,000
• B) Land..............................250,000
• Gain from Receipt of Donated Land 250,000
• C) Land..............................250,000
• Unrealized Gain from Receipt of
• Donated Land..................250,000
• D) Land..............................250,000
• Retained Earnings................250,000

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Definitions:

Preferred Brand

The brand consumers favor over others due to its quality, reliability, or other distinguishing features.

Gut Feeling

Refers to an intuitive or instinctual judgment that is made without the use of rational processes.

Aided Recall

A memory retrieval process in which cues or prompts are given to assist in recalling specific information or experiences.

Salience

Salience refers to the prominence or importance of an object, concept, or entity within a particular context.