Beverly Dalton Started Her Business as a Sole Proprietorship

question 56

Multiple Choice

Beverly Dalton started her business as a sole proprietorship.At that time,the business purchased land for $51,000.The December 31,2019 market value of the land is $92,000.On the December 31,2019 balance sheet,this asset should be reported at ________ under U.S.GAAP and at ________ under international reporting standards.

• A) $51,000; $51,000
• B) $92,000; $92,000
• C) $51,000; $92,000
• D) $92,000; $51,000

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Definitions:

Theories Of Expectations

Economic theories that explore how the expectations of individuals or firms about future economic conditions affect their current decision-making and behavior.

Rational Expectations Theory

A concept suggesting that individuals make decisions based on their rational outlook, available information, and past experiences.

Certainty Equivalent Theory

A concept in decision theory that quantifies the value of a risky asset in terms of a certain amount of money.

Supply-Side Policy

Economic strategies aimed at increasing the production capacity of an economy by improving the conditions for businesses and producers.