Question 1 part A and B

A. Land was acquired in 2018 for a future building site at a cost of $40,900. The assessed valuation for tax purposes is $28,400, a qualified appraiser placed its value at $48,200, and a recent firm offer for the land was for a cash payment of $45,300. The land should be reported in the financial statements at:

Multiple Choice

• $ 45,300.

• $ 28,400.

• $ 48,200.

• $ 40,900.

B. The following information ($ in millions) comes from a recent annual report of Amazon.com, Inc.:

Net sales	$	10,851
Total assets		4,414
End of year balance in cash		1,143
Total stockholders' equity		502
Gross profit (Sales Cost of Sales)		2,547
Net increase in cash for the year		19
Operating expenses		2,053
Net operating cash flow		764
Other income (expense), net		(23)

Compute Amazon's balance in cash at the beginning of the year.

Multiple Choice

• $ 1,124

• $ 1,806

• $ 1,143

• $ 881