Homevestors purchased land for $400,000 in 2001.In 2013,an independent appraiser assessed the value of the land at 900,000.At what amount should the land be recorded on the company's 2013 financial statements?

Question

Quizplus · Accepted Answer

According to the historical cost principle in accounting, land should be recorded at its original purchase cost, which is $400,000 in this case.

Homevestors Purchased Land for $400,000 in 2001