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A real estate company wants to buy a house to upgrade and resell. The house...

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Accounting

  1. A real estate company wants to buy a house to upgrade and resell. The house tax assessment is $500K. The owner is asking for $750K. Another buyer offers $800K, and a bidding war develops. The real estate company ends up buying the house for $900K. What is the value for the asset that it records on its balance sheet? When recording the value of an asset that has been bought, the asset is recorded at the:
    1. $500K
    2. $750K
    3. $800K
    4. $900K
    5. $150K

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