Beta Corporation purchased $100,000 worth of land by paying $10,000 cash and signing a $90,000 mortgage.Immediately prior to this transaction the corporation had assets,liabilities,and owners' equity in the amounts of $150,000,$30,000,and $120,000 respectively.What is the total amount of Beta Corporation's assets after this transaction has been recorded?
A)$240,000
B)$250,000
C)$160,000
D)$40,000
E)$260,000

Question

Quizplus · Accepted Answer

The initial assets were $150,000. The land purchase adds $100,000 to assets, making it $250,000. The cash payment reduces assets by $10,000, resulting in total assets of $240,000.

Beta Corporation Purchased $100,000 Worth of Land by Paying $10,000