A company purchased property for $300,000. The property included an acre of land valued at $50,000, a building valued at $150,000, and equipment valued at $125,000.
-The land will be recorded at a cost of
A) $45,000.
B) $48,234.
C) $46,154.
D) $50,000.

Question

Quizplus · Accepted Answer

The land is valued at $50,000 out of a total property value of $325,000 ($50,000 + $150,000 + $125,000). The land's proportionate cost is ($50,000/$325,000) * $300,000 = $46,154.

A Company Purchased Property for $300,000