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do?i nlocator assignment Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $218,051. The Focus Company initially offered to buy the land for $179,767. The companies settled on a purchase price of $210,991 the same day, another piece of land on the same block sold for $234,159. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? $218,051 $210,991 $234,159
2 1 Online teach . × - Donner Company is selling a piece of land adjacent to its business $218,051. The Focus Company initially offered to buy the land for $179,767. The companies settied on a purchase price of $210,91.on the same day, another piece of land on the same block sold for $234,159. Under the cost concept, at what amount should the land be recorded in the accounting records of Focus Company? An appraisal reported the market value of the land to be $218,051 $179,767 $210,991 $234,159
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Answer #1

C.$210,991.

as per cost concept the asset is to be recorded for the actual price spent to purchase the asset.

here, $210,991 was actually spent to purchase the asset.

It is not of material importance as per cost concept to consider initial offer value of $179,767 or the price at which another block was sold ($234,159).

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