The Maximum Experience Company Acquired a Building for $500,000

question 178

Multiple Choice

The Maximum Experience Company acquired a building for $500,000.Maximum Experience had an appraisal done and found that the building was worth $575,000.The seller had paid $300,000 for the building 6 years ago.Which accounting principle would prescribe that Maximum Experience record the building on its records at $500,000?

• A)Monetary unit principle
• B)Going-concern principle
• C)Cost principle
• D)Business entity principle
• E)Revenue recognition principle

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