Grasshopper Room Company acquired land and buildings for $1,500,000. The land is appraised at $475,000 and the buildings are appraised at $775,000. The debit to the Buildings account will be:

Question

Quizplus · Accepted Answer

The debit to the Buildings account will be equal to the appraised value of the buildings, which is $775,000. The land appraisal value is not relevant to the debit to the Buildings account. Therefore, the correct answer is option B.

Grasshopper Room Company Acquired Land and Buildings for $1,500,000