Identify the value of building.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Kindly help me with accounting questions

If beginning inventory is $75,000, cost of goods purchased is $420,000, and ending inventory is $65,000, what is the cost of goods sold under a periodic system? (a) $470,000 (b) $400,000 (c) $370,000 (d) $430,000

Need correct answer general accounting qualification

Answer 2

Question

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Answer 6

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Answer 7

Chapter 1, Problem 1MCQ

To determine

Identify the value of building.

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

Option C is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Historical cost principle:

This is an accounting principle which states that the actual cost paid in receipt of the asset is the reliable measure and hence assets and services should be recorded at actual cost or historical cost. The purchaser records the building at the actual cost of $450,000.

From the above given explanation it is determined that the purchaser will record the building at its actual cost of $450,000. Therefore, Option C ($450,000) is the correct answer and other option a, b, d and e are incorrect answer.

Answer 12

Ch. 1 - Prob. 1MCQ Ch. 1 - Prob. 2MCQ Ch. 1 - 3. If the assets of a company increase by $100,000...Ch. 1 - 4. Brunswick borrows $50,000 cash from Third...Ch. 1 - 5. Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQ Ch. 1 - Prob. 2DQ Ch. 1 - Prob. 3DQ Ch. 1 - Prob. 4DQ Ch. 1 - Prob. 5DQ

Identify the value of building.

Identify the value of building.

Answer to Problem 1MCQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 1 Solutions