Concept explainers
(a)
Cost concept: This is an accounting concept 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.
To indicate: If the amount at which the land is recorded should be changed according to the appraised value of land
(b)
To indicate: The effect of sale of land for $2,125,000, on the
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Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th