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Asked Dec 14, 2019
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A business purchases an acre of land for $5,000. The current market value is $5,550, and the land was assessed for property tax purposes at $5,250. What value should the land be recorded at, and which accounting principle supports your answer?

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Expert Answer

  • The land should be reported at $5,000.
  • Historical principle of accounting states that the assets and liabilities must be r...

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