In 1998,Parker Corporation purchased land for $130,000.In 2010,Parker Company had the land appraised,and its value was estimated to be $190,000.Also during 2010,another company offered Parker $145,000 for the parcel of land.When the balance sheet is prepared at the end of 2010,at what dollar amount should the land be reported?

Question

Quizplus · Accepted Answer

According to the historical cost principle, assets should be recorded at their original purchase price, so the land should be reported at $130,000.

In 1998,Parker Corporation Purchased Land for $130,000