You Recently Purchased a Grocery Store

question 3

Multiple Choice

You recently purchased a grocery store.At the time of the purchase,the store's market value equaled its book value.The purchase included the building,the fixtures,and the inventory.Which one of the following is most apt to cause the market value of this store to be lower than the book value?

• A)a sudden and unexpected increase in inflation
• B)the replacement of old inventory items with more desirable products
• C)improvements to the surrounding area by other store owners
• D)construction of a new restricted access highway located between the store and the surrounding residential areas
• E)addition of a stop light at the main entrance to the store's parking lot

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