Question

Zuri Corporation has been in operation for over 100 years. Zuri owns real property in downtown Chicago that it acquired 50 years ago for $10,000. This property now has a subway stop next to it and is worth $12,000,000 according to a recent independent appraisal. The city has this property assessed for $9,000,000 for property tax purposes. Zuri's management intends to hold on to the property for 5 more years and then sell it when they believe it can be sold for $15,000,000. If you were to look at a current Zuri Corporation GAAP compliant balance sheet what amount would you expect to see this real property listed at?

Group of answer choices

$9,000,000

$15,000,000

$12,000,000

$10,000

Answer 1