Calculation of value of land purchased during the year
|Land, June 30, 2019||850,000|
|Less: Land, June 30, 2018||- 500,000|
|Less: Asset revaluation surplus||- 150,000|
|Value of land purchased during the year||$200,000|
During the year, $120,000 was borrowed to acquire land.
Land purchased for cash = Value of land purchased during the year - Value of land acquired by taking borrowings
= 200,000 - 120,000
Correct option is (c).