On July 1, 2006, Town Company purchased for $540,000 a warehouse building and the land on which it is located. The following data were available concerning the property:
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|
Current appraised value |
Seller’s original cost |
|
|
Land |
$200,000 |
$140,000 |
|
Warehouse building |
300,000 |
280,000 |
|
$500,000 |
$420,000 |
Town should record the land at
- $140,000
- $180,000
- $200,000
- $216,000