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 a $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 $119,00 current market value of 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.
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