Donner Company Is Selling a Piece of Land Adjacent to Its

Multiple Choice

Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported the market value of the land to be $220,000. The Focus Company initially offered to buy the land for $177,000. The companies settled on a purchase price of $212,000. On the same day, another piece of land on the same block sold for $232,000. Under the cost principle, at what amount should the land be recorded in the accounting records of Focus Company?

A) $177,000
B) $212,000
C) $220,000
D) $232,000