Monroe Co. purchased a tract of land paying $100,000 in cash and assuming an existing mortgage of $60,000. The municipal tax bill disclosed an assessed valuation of $180,000. The amount Monroe should record as land connected with this acquisition is:

Question

Quizplus · Accepted Answer

The amount to be recorded as land is the sum of cash paid and the existing mortgage assumed, which is $100,000 + $60,000 = $160,000. The assessed valuation of $180,000 is not relevant for recording the land.

Monroe Co Purchased a Tract of Land Paying $100,000 in Cash