Should monetary amount assigned to land in business record

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Reference no: EM131526237

Question: 1. On July 10, Elrod Repair Service extended an offer of $100,000 for land that had been priced for sale at $120,000. On July 25, Elrod Repair Service accepted the seller's counteroffer of $112,000. Describe how Elrod Repair Service should record the land.

2. Land with an assessed value of $300,000 for property tax purposes is acquired by a business for $500,000. Seven years later, the plot of land has an assessed value of $400,000 and the business receives an offer of $600,000 for it. Should the monetary amount assigned to the land in the business records now be increased?

Reference no: EM131526237

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