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A Building with an Appraisal Value of $167,000 Is Made

Question 1

Multiple Choice

A building with an appraisal value of $167,000 is made available at an offer price of $162,000.The purchaser acquires the property for $25,000 in cash, a 90-day note payable for $75,000, and a mortgage amounting to $65,000.The cost basis recorded in the buyer's accounting records to recognize this purchase is


A) $167,000
B) $162,000
C) $165,000
D) $140,000

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