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(Solved): On June 25, McCade Repair Service extended an offer of $144,000 for land that had been priced for s ...
On June 25, McCade Repair Service extended an offer of $144,000 for land that had been priced for sale at $165,000, On July 9, McCade Repair Service accepted the seller's counteroffer of $157,000. On October 1, the land was assessed at a value of $236,000 for property tax purposes. On December 22, MeCade Repsir Service was offered $251,000 for the land by a national retall chain. At what value should the land be recorded in McCade Repair Service's records?
Land is always recoreded at Book Value in the books.Book Value is the price paid initially for the property. Thus MCc Cade Repair Services accepted the counter offer of $157000 made by seller, the land will be recorded at that valuein the books when purchased.