eBook Show Me How Calculator Print Item Cost Concept On February 3, Clairemont R

Question

eBook Show Me How Calculator Print Item Cost Concept On February 3, Clairemont Repair Service extended an offer of $360,000 for land that had been priced for sale at $400,000. 0n February 28, Clatremont Repair Service accep ted the seller's counteroffer of $380,000. On October 23, the land was assessed at a Service was offered $450,000 for value of $390,000 for property tax purposes. On January 15 of the next year, Clairemont Repair the land by a national retail chain. At what value should the land be recorded in Clairemont Repair Service's records?

Explanation / Answer

1. As per cost concept,land should be recorded at cost i.e $380,000 in the books of Clairemont repair services.

2.

A)As per accounting equation.

Assets = Owner's equity + liabilities

675000= owner's equity + 215000

Owner's equity = $460,000

B)675000 + 112300= Owner's equity +32000+21500

Therefore owner's equity =$540,300

As per chegg answering guidelines, first question should be answered.

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