Steel City Company (SCC) paid $120,000 to purchase land that it planned to use as a future building site. A short time later, the company was approached with an opportunity to purchase a better property. The new property cost $125,000. After considering the alternative, SCC decided to reject the offer because the company would be required to sell the original site for $119,000 thereby incurring $1,000 loss on the disposal of the land ($120-000-$119-000). Based on this information.

A: the $1,000 loss is relevant to the decision
B: the $119,000 current market value of the original site is relevant to the decision
C: the $125,000 cost of the replacement property is not relevant to the decision
D: the $5,000 difference between the cost of the two properties ($125,000-$120,000) is relevant to the decision

Answer rating: 100% (QA)

Solution The 11900 current market value of original site i... View the full answer