Land and a building were purchased for a sum of $200,000. If appraisals set the value of the land at $140,000 and the building at $70,000, the building will be recorded at

Name: Land and a building were purchased for a sum of $200,000. If appraisals set the value of the land at $140,000 and the building at $70,000, the building will be recorded at
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The building should be recorded at its appraised value of $70,000, which is 1/3 of the total purchase price. Therefore, 1/3 of $200,000 is $66,667.

Land and a Building Were Purchased for a Sum of $200,000