Donner company is selling a piece of land adjacent to its business premises. an appraisal reported the market value of the land to be $220,000. focus company initially offered to buy the land for $177,000. the companies settled on a purchase price of $212,000. on the same day, another piece of land on the same block sold for $232,000. under the cost concept, at what amount should the land be recorded in the accounting records of focus company?
a. $232,000
b. $212,000
c. $220,000
d. $177,000

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.