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

Options:

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