A construction company paid $82,000 cash for land used in the business.At the time of purchase,the land had a list price of $90,000.When the balance sheet was prepared,the fair value of the land was $85,000.At what amount should the land be reported on the balance sheet of the company?

Question

Quizplus · Accepted Answer

Based on the historical cost principle,the land should be recorded at its cost of $82,000.

A Construction Company Paid $82,000 Cash for Land Used in the Business.At