Carey Company buys land for $50000 on 12/31/16. As of 3/31/17 the land has appreciated in value to $50700. On 12/31/17 the land has an appraised value of $51800. By what amount should the Land account be increased in 2017?

Question

Quizplus · Accepted Answer

Under generally accepted accounting principles (GAAP), land is recorded at its historical cost. Appreciation in the value of land is not recorded in the financial statements.

Carey Company Buys Land for $50000 on 12/31/16