Accounting Concepts For each of the assets listed below, indicate the amount at which the asset should be recorded in the balance sheet and which basic concepts or constraints lead to that valuation.

a. Land held as a future warehouse site was purchased for

$90,000 three years ago, but has an appraised value of

$150,000 at present.

b. Goods that cost $40,000 are held for sale to customers.

Because of rain damage it appears the goods can be sold for no more than $25,000.

c. Goods that cost $80,000 are held for sale to customers.

Because of unusually heavy demand and a national shortage, it would cost $110,000 to purchase the goods currently and the company should be able to sell the goods for at least $140,000.

d. Five special computer covers were purchased for $15 each. The covers are expected to last the life of the computers, estimated to be four years.

e. The company owns a warehouse in Italy that cost $1,750,000 to construct two years ago. The warehouse is no longer being used, and it is estimated that the company will only receive $800,000 when it is sold, even though it is still in good condition.

f. The company owns a warehouse in London that cost $1,750,000 to construct two years ago. Because of its specialized nature, it could be sold for only $1,000,000 today.
The company has highly profitable operations in Great Britain and plans to continue to use the warehouse for at least 15 more years.