
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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Chapter 1 Solutions
Bundle: Corporate Financial Accounting, Loose-leaf Version, 14th + CengageNOWv2, 1 term Printed Access Card
- How much intrest bank collect?arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.]XYZ declared a $1 per share dividend on August 15. The date of record for the dividend was September 1 (the stock began selling ex-dividend on September 2). The dividend was paid on September 10. Ellis is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following independent circumstances. b. Ellis bought 100 shares of XYZ stock on August 1 for $21 per share. Ellis sold his XYZ shares on September 5 for $23 per share. Ellis received the $100 dividend on September 10 (note that even though Ellis didn’t own the stock on September 10, he still received the dividend because he was the shareholder on the record date).arrow_forwardHow much overhead applied over this year?arrow_forward