Carey Company buys land for $50,000 on 12/31/20.As of 3/31/21, the land has appreciated in value to $50,700.On 12/31/21, the land has an appraised value of $51,800.By what amount should the Land account be increased in 2021?

Question

Quizplus · Accepted Answer

Under generally accepted accounting principles (GAAP), land is recorded at its historical cost and is not adjusted for increases in market value. Therefore, the Land account should not be increased due to appreciation.

Carey Company Buys Land for $50,000 on 12/31/20