Identify the value of building.

Question

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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.

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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.

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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.

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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.

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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

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Chapter 1 Solutions