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Suppose you are considering the purchase of a building. The seller is asking $200,000 for a building that cost her $100,000. An appraisal shows the building has a value of $180,000. You first offer $160,000. The seller counter offers with $190,000. Finally, you and the seller agree on a price of $185,000. What dollar amount for this building is reported on your financial statements? Which accounting assumption or principle guides your answer?

Suppose you are considering the purchase of a building. The seller is asking $200,000 for a building that cost her $100,000. An appraisal shows the building has a value of $180,000. You first offer $160,000. The seller counter offers with $190,000. Finally, you and the seller agree on a price of $185,000. What dollar amount for this building is reported on your financial statements? Which accounting assumption or principle guides your answer?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose you are considering the purchase of a building. The seller is asking $200,000 for a building that cost her $100,000. An appraisal shows the building has a value of $180,000. You first offer $160,000. The seller counter offers with $190,000. Finally, you and the seller agree on a price of $185,000. What dollar amount for this building is reported on your financial statements? Which accounting assumption or principle guides your answer?
Transcribed Image Text:Suppose you are considering the purchase of a building. The seller is asking $200,000 for a building that cost her $100,000. An appraisal shows the building has a value of $180,000. You first offer $160,000. The seller counter offers with $190,000. Finally, you and the seller agree on a price of $185,000. What dollar amount for this building is reported on your financial statements? Which accounting assumption or principle guides your answer?
Round the following money value to the nearest cent. 375.7256 $(Type an integer or a decimal.)
Transcribed Image Text:Round the following money value to the nearest cent. 375.7256 $(Type an integer or a decimal.)
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