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Your company wanted to buy a piece of land for business use. At first, the seller asked for $150 million. He said that this was
Your company wanted to buy a piece of land for business use. At first, the seller asked for $150 million. He said that this was a bargain because the land was purchased for $152 million two year ago. But the surveyor you employed appraised the land at $148.5 million. So you offered $147 million for the land. The seller then made a counter offer of $149 million, and you both finally agreed on a price of $148 million. According to the historical cost principle, which value should be reported for the land in your financial statements? (2 marks)
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