Carey Company buys land for $50,000 on 12/31/17. As of 3/31/18, the land has appreciated in value to $50,700. On 12/31/18, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2018?

Question

Quizplus · Accepted Answer

Land is recorded at historical cost and is not adjusted for changes in market value under generally accepted accounting principles (GAAP). Therefore, the Land account should not be increased.

Carey Company Buys Land for $50,000 on 12/31/17