A Business Purchases a Building for $250,000

question 10

Essay

A business purchases a building for $250,000.The current market value is $375,000.The tax assessment value is $325,000.At what value should the building be recorded,and which accounting principle supports your answer?

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Definitions:

Cannon-Bard Theory

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more conflicting beliefs, ideas, or values at the same time.

Frustration/Aggression

A theory suggesting that aggression is the result of blocking, or frustration, of certain behaviors or goals.

Maslow's Theory

A psychological theory proposing a hierarchy of human needs, from basic physiological needs to self-actualization.