Blake just purchased a condo for his business for $86,000 that would have cost $72,000 nine years
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Question:
Blake just purchased a condo for his business for $86,000 that would have cost $72,000 nine years ago. Blake had wanted to purchase the condo for the last nine years. At which amount should Blake report the condo on a Balance Sheet prepared in accordance with GAAP (Generally Accepted Accounting Principles)?
Group of answer choices
Either amount is acceptable under GAAP
$72,000; because Blake had intentions of purchasing the property nine years ago
$86,000; because Blake paid $86,000 for the condo
A fairly determined amount between $72,000 and $86,000
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
Posted Date: