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Hoot Enterprises buys a warehouse for $590,000 to use for its East Coast distribution operations. On the date of the purchase, a professional appraisal shows a value of $650,000 for the warehouse. The seller had originally purchased the building for $480,000. Hoot has a similar warehouse on the West Coast that has a book value of $603,000. Under the historical cost principle, Hoot should record the building for
- a. $650,000.
- b. $480,000.
- c. $590,000.
- d. $603,000.
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