Question

If a company is considering the purchase of a parcel of land that was acquired by the seller for $93,000 is offered for sale at $166,000, is assessed for tax purposes at $103,000, is recognized by the purchaser as easily being worth $156,000, and is purchased for $153,000, the land should be recorded in the purchaser's books at:

Answer 1

I may be wrong but I think it is still 153,000 dollars because that is what was purchased.

Answer 2

The land should be recorded in the purchaser's books at : $153,000.

Explanation:

Since the parcel of land is purchased by the company for $153,000, hence the land should be recorded in the purchaser's books at : $153,000.