Dale's business services purchased a land in January 2015 at a cost of $350,000. It paid a sales tax and transfer document cost of $2,500. Further, the cost of removal of an old building (that is not in a usable condition) in that land was $10,000. In January 2017, an appraiser estimated the value of land to be $450,000. A similar land in the neighborhood sold for $500,000 last month. At what value should Dale represent the building in the balance sheet to be prepared at the end of 2017

Respuesta :

Answer:

land   362,500

Explanation:

the accounting considers that asset should be measure at historic cost thus, the land will be disclosure as the sum of all the cost incurred to obtain it and leave it read y for use:

350,000 cost

   2,500 delinquent propierty tax

  10,000 removal of the building

362,500 total cost.