On June 10, Easy Repair Service extended an offer of $95,000 for land that ha been priced for sale at $118, 500. On August 2, Easy Repair Service accepted the seller's counteroffer of $105,000. On...

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On June 10, Easy Repair Service extended an offer of $95,000 for land that ha been priced for sale at $118, 500. On August 2, Easy Repair Service accepted the seller's counteroffer of $105,000. On August 27, the land was assessed at a value of $80,000 for property tax purposes. On April 1, Easy Repair Service was offered $125,000 for the land by a national retail chain. At what value should the land be recorded in Easy Repair Service's records?

Answered Same DayDec 31, 2021

Answer To: On June 10, Easy Repair Service extended an offer of $95,000 for land that ha been priced for sale...

David answered on Dec 31 2021
122 Votes
For the records, any land, plant or property has to be recorded at the cost or the purchase price.

Here the purchase price is $105,000. It will be recorded at this value only.
These assets are not marked to the market.
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