Ten years ago a corporation purchased a building for $160,000. At that time, the corporation felt that the business was worth $185,000. The current market value of the business is $460,000. The building has been assessed at $435,000 for property tax purposes. At which amount should the corporation record the building in its accounting records.

$435,000

Step-by-step explanation:

According to the International Financial Reporting Standards (IFRS), the fixed assets are recorded at the fair market value i.e property tax purpose value that is given $435,000 for assessing the building valuation.

The historical cost, business worth, is to be ignored.

So, only $435,000 would be recognized so that the financial statements could be better displayed.

We assume that the IFRS is followed

we have three similar triangles, because each has a right angle and shares an angle.   let's write the angles in order: opposite to short leg, long leg, hypotenuse.

cab similar to bad similar to cbd

or as ratios,

ca: ab: cb = ba: ad: bd = cb: bd: cd

we also know

ac = ad + cd

(ad+cd): ab: cb = ba: ad: bd = cb: bd: cd

(ad+cd)/cb=cb/cd

we have cb=6, ad=5 and seek x=cd.

we reject the negative root and conclude x=4

answer: 4

the 8 in 8,420 is in the thousands place so it's value is 8 thousand.

the 8 in 6,870 is in the hundreds place so it's value is 8 hundred.

divide 8000 by 800 to find the answer:

8000 / 800 = 10

the 8 in 8,420 is 10 times greater than the 8 in 6,870