On May 20, White Repair Service extended an offer of $108,000 for land that had been priced for sale at $140,000. On May 30, White Repair Service accepted the seller's counteroffer of $115,000. On June 20, the land was assessed at a value of $95,000 for property tax purposes. On July 4, White Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in White Repair Service's records?
A) $108,000
B) $95,000
C) $140,000
D) $115,000

Question

Quizplus · Accepted Answer

The land was ultimately purchased for $115,000, which is the agreed upon price between White Repair Service and the seller. This is the value that should be recorded in the company's records. The fact that the land was assessed at a lower value for property tax purposes does not impact the purchase price, nor does the subsequent offer of $150,000 by a national retail chain.

On May 20, White Repair Service Extended an Offer of $108,000