In 1999,the Denim Company bought land that cost $15,000.In 2005,a similar piece of land was bought for $28,000 and the company's existing land was estimated to be worth $18,000.On the balance sheet at the end of 2005,the land that was purchased in 1999 would be reported at:

Question

Quizplus · Accepted Answer

The land purchased in 1999 would be reported at its historical cost of $15,000, as per the historical cost principle in accounting.

In 1999,the Denim Company Bought Land That Cost $15,000