Tom Ray, president of the Ray Company, was offered $500,000 cash for the land and buildings occupied

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Tom Ray, president of the Ray Company, was offered $500,000 cash for the land and buildings occupied by the business. These assets had been acquired five years ago at a price of $300,000. Ray refused the offer, but is inclined to increase the land and buildings to a total valuation of $500,000 in the balance sheet in order to show more accurately “how much the business is worth.” Do you agree? Explain.

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Accounting The Basis For Business Decisions

ISBN: 9780070415515

5th Edition

Authors: Robert F. Meigs, Walter B Meigs

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