If a parcel of land is offered for sale at $45,000, is assessed for tax purposes at $20,000, is considered by its purchasers to be worth $36,000, and is purchased for $34,000, theland should be recorded in the purchaser's books at:

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The land should be recorded at the amount it was purchased for, which is $34,000. This is the most reliable indication of the land's value as it represents the price paid by a willing buyer and willing seller in an arm's length transaction. The assessed value and perceived value are not as reliable indicators of the land's actual value. The offered sale price may be an asking price and not the actual value.

If a Parcel of Land Is Offered for Sale at $45,000