Asked by Alice Young on May 07, 2024
Verified
If a building is appraised for $85,000, offered for sale at $90,000, and the buyer pays $80,000 cash for it, the buyer would record the building at $85,000.
Appraised
The process of professionally evaluating the value of a particular piece of property, such as real estate or a collectible.
Offered for Sale
Products or services made available to customers for purchase.
Buyer Pays
A term indicating that the purchaser is responsible for the cost of shipping and insurance during transportation of goods.
- Acquire knowledge on the logging and effects of enterprise activities.
- Recognize the assumptions and principles underpinning financial reporting.
Verified Answer
MG
Marko GrgicMay 12, 2024
Final Answer :
False
Explanation :
The buyer would record the building at the amount they paid for it, which is $80,000, not the appraised value or the offered sale price.
Learning Objectives
- Acquire knowledge on the logging and effects of enterprise activities.
- Recognize the assumptions and principles underpinning financial reporting.