4. James Corporation acquired a land in 2024 for a future building site at...
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James Corporation acquired a land in 2024 for a future building site at a cost of $41,700. The assessed valuation for tax purposes is $28,400, a qualified appraiser placed its value at $48,700, and a recent firm offer for the land was for a cash payment of $45,500. The land should be reported in the financia statements at: Multiple Choice $28,400 $41,700 $45,500 $48,700. Which of the following is not true about accounting for long-term construction contracts? Multiple Choice Long-term construction contracts could show a contract asset or contract liability, depending on the relation between construction in progress and billings. The billings on construction contract account is a contra account to accounts receivable. When a customer is billed for payment due, billings on contracts in progress is credited at the same time accounts receivable is debited. Gross profit is debited to construction in progress. Wolfe sells $107,000 of product to Benjamin, and also purchases $11,400 of advertising services from Benjamin. The advertising services have a fair value of $8,700. Wolfe should recognize total revenue to account for these events of: Multiple Choice $104,300. $95,600. $98,300. $107,000
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