Question

On May 20, White Repair Service extended an offer of $108,000 for land that had been priced for sale at $140,000. On May 30, White Repair Service accepted the seller's counteroffer of $115,000. On June 20, the land was assessed at a value of $95,000 for property tax purposes. On July 4, White Repair Service was offered $150,000 for the land by a national retail chain. At what value should the land be recorded in White Repair Service's records? O $95,000 O $115,000 O $140.000 O $108,000

Answer 1

1. answer is option B $115,000

The actual amount received should be reported for the asset sold and in the given case it is $115,000.

2. answer is option C Financial Accounting Standards Board (FASB)

This organization establish and improve GAAP within the United States in the public interest.

3. answer is option C Generally accepted accounting principles

GAAP = Generally accepted accounting principles. It includes a set of commonly followed accounting standards and rules related to financial reporting.

4. answer is option A $44000

Assets = liabilities + stockholder's equity

Stockholder’s equity = assets – liabilities = 128000-84000 = 44000

5. answer is option A decrease an asset, decrease a liability

Cash - an asset decreases

Accounts payable – a liability decreases