1.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. 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 concept, at what amount should the land be recorded in the accounting records of Focus Company?

a. $232,000

b. $212,000

c. $220,000

d. $177,000

2.The assets and liabilities of a company are $128,000 and $84,000, respectively. Owner's equity should equal

a. $128,000

b. $84,000

c. $44,000

d. $212,000