Birken Co.purchased a building for $500,000 in 2012.At the end of 2017,when it had a book value of $450,000,it was appraised for $1,000,000.A potential buyer offered $900,000.Birken rejected the offer.What amount is in Birken's records at the end of 2017 in the Building account?

Question

Quizplus · Accepted Answer

The book value of the building at the end of 2017 is $450,000, which is the amount recorded in Birken's records. The appraisal value of $1,000,000 and the potential buyer's offer of $900,000 are not relevant to the amount in Birken's records. Therefore, the correct answer is C, $500,000, which is the original cost of the building.

Birken CoPurchased a Building for $500,000 in 2012