Question: 1. 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?
2. The assets and liabilities of a company are $128,000 and $84,000, respectively. Owner's equity should equal
a. $128,000
b. $84,000
c. $44,000
d. $212,000