Question

SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building...

SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building was appraised at $65,000; the land at $40,000; and the parking lot at $10,000. To the nearest dollar, the value of the land to be recorded in the books should be:
$40,000.
$34,783.
$36,364.
$48,696.
$56,522.

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Answer #1

The value of the parking lot to be recorded in the books = Total value – Value apportioned to land and building

= $100,000 – ($34,783 + $56,522)

= $8,695

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