On March 31, Higgins Repair Service extended an offer of 415, 000.00 for the Lathe Machines that has been priced for sale at P500, 000.00. On April 15, Higgins Repair Service accepted the seller’s counteroffer of P437, 000.00. The fair market value of the Lathe Machines as of November 17 is P475, 000.00. At what value should the machineries be recorded in the Higgins Repair Service? Why?

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