Multiple Choice
Rando Company has land that cost $450,000 but now has a fair value of $600,000. Rando Company follows GAAP to account for the land. Which of the following statements is correct?
A) Rando Company would credit Retained Earnings by $150,000.
B) Rando Company would report the land at $600,000.
C) Rando Company would report a net income increase of $150,000 due to an increase in the value of land.
D) Rando Company must continue to report the land at $450,000.
Correct Answer:
Verified
Correct Answer:
Verified
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