Beta Corporation purchased $110,000 worth of land by paying 11,000 cash and sign

Question

Beta Corporation purchased $110,000 worth of land by paying 11,000 cash and signing a $99,000 mortgage. Immediately prior to this transaction the corporation had assets, liabilities, and owners' equity in the amounts of $151,000, $30,500, and $120,500 respectively. What is the total amount of Beta Corporation's assets after this transaction has been recorded?

Beta Corporation purchased $110,000 worth of land by paying 11,000 cash and signing a $99,000 mortgage. Immediately prior to this transaction the corporation had assets, liabilities, and owners' equity in the amounts of $151,000, $30,500, and $120,500 respectively. What is the total amount of Beta Corporation's assets after this transaction has been recorded?

Explanation / Answer

Hi,

Please find the answer as follows:

Total Amount of Assets = 110000 (Land) + 151000 (Original Value of Assets) - 11000 (Cash Payment) = 250000

Option C (250000) is the correct answer.

Thanks.

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