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If a company is considering the purchase of a parcel of land that was acquired by...

If a company is considering the purchase of a parcel of land that was acquired by the seller for $104,000 is offered for sale at $188,000, is assessed for tax purposes at $114,000, is considered by the purchaser as easily being worth $178,000, and is purchased for $175,000, the land should be recorded in the purchaser's books at: a,114000. b ,175000. c, 176500. c, 178000. d, 188000.

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--Correct Answer - Option 'B' $ 175,000

--Land should be recorded in the books of purchaser at the price paid by (or payable by) the purchase to acquire it, which in this case is equal to $ 175,000 (the land purchased for).

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