Aber Company buys land for $145000 on 12/31/21.As of 3/31/22 the land has appreciated in value to $151000.On 12/31/22 the land has an appraised value of $155400.By what amount should the Land account be increased in 2022?
A)$0.
B)$6000.
C)$4400.
D)$10400.

Question

Quizplus · Accepted Answer

Under the historical cost principle, land is recorded at its purchase price and is not adjusted for changes in market value. Therefore, the Land account should not be increased for appreciation in value.

Aber Company Buys Land for $145000 on 12/31/21