On February 7, Snap Repair Service extended an offer of $75,000 for land that had been priced for...
Question:
On February 7, Snap Repair Service extended an offer of $75,000 for land that had been priced for sale at $85,000. On February 21, Snap Repair Service accepted the seller s counteroffer of $81,000. On April 30, the land was assessed at a value of $125,000 for property tax purposes. On August 30, Snap Repair Service was offered $130,000 for the land by a national retail chain.
At what value should the land be recorded in Snap Repair Service s records?
US GAAP (Generally Accepted Accounting Principle)
US GAAP is the set of directions proposed by the FASB (Financial Accounting Standard Board) to prepare the financial statement of the business entity. US GAAP is compulsorily followed by every organization in each country.
Answer and Explanation: 1
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View this answerThe land should be recorded at $81,000 as per the cost principle provided by US GAAP. The cost principle says an asset should be recorded at the...
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