PE 1- 1A Cost concept On June 10, Easy Repair Service extended an offer of $ 95,000 for land that had been priced for sale at $ 118,500. On August 2, Easy Repair Service accepted the seller’s counteroffer of $ 105,000. On August 27, the land was assessed at a value of $ 80,000 for property tax purposes. On April 1, Easy Repair Service was offered $ 125,000 for the land by a national retail chain. At what value should the land be recorded in Easy Repair Service’s records?
EX 1- 3 Business entity concept Rocky Mountain Sports sells hunting and fishing equipment and provides guided hunt-ing and fishing trips. Rocky Mountain Sports is owned and operated by Mike Weber, a well- known sports enthusiast and hunter. Mike’s wife, Susan, owns and operates Madison Boutique, a women’s clothing store. Mike and Susan have established a trust fund to finance their children’s college education. The trust fund is maintained by National Bank in the name of the children, Kerri and Kyle. a. For each of the following transactions, identify which of the entities listed should record the transaction in its records.
R Rocky Mountain Sports
B National Bank Trust Fund
M Madison Boutique
X None of the above