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A company paid $20,000,000 for land and building in a single purchase transaction. The land had been appraised for $18,000,000 and the building for $6,000,000.
A company paid $20,000,000 for land and building in a single purchase transaction. The land had been appraised for $18,000,000 and the building for $6,000,000. If the accountant were to record the acquisition with a credit to cash as $20,000,000 and a debit to land of $18,000,000
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None of the other alternatives are correct
net income in previous years would be understated
net income in future years would be correctly stated
net income in future years would be understated
net income in future years would be overstated
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