Queensway purchased a piece of land in 2009 for $60,000.At the end of 2011 the land was appraised and valued at $100,000.In 2012 the company sold the land for $90,000.What should the company report on its 2012 income statement?

Question

Quizplus · Accepted Answer

The gain is calculated as the selling price ($90,000) minus the purchase price ($60,000), resulting in a gain of $30,000. The appraisal value is not relevant for the income statement.

Queensway Purchased a Piece of Land in 2009 for $60,000