Laramie Corporation has acquired a property that included both land and a building for $560,000. The corporation hired an appraiser who has determined that the market value of the land is $370,000 and that of the building is $440,000. At what amount should the corporation record the cost of the building? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The cost of the building should be recorded based on its market value, which is $440,000. Therefore, the cost of the building should be recorded as $440,000.

Laramie Corporation Has Acquired a Property That Included Both Land