For the following examples, state what the correct value is and what accounting concept justifies your answer:

a. NYU Health bought a magnetic resonance imaging (MRI)
machine worth $1,500,000, but received a discount and only paid $1,200,000. What is the correct cost to be recorded?

b. Philadelphia Medical Center bought an acre of land for $1 million at a sheriff’s sale. After looking at online real estate websites, the accountants noticed similar properties are valued at $1.4 million. What is the correct cost to be recorded?

c. Magee Hospital received a payment from an insurance company for $100,000. This amount included $70,000 for services already rendered and $30,000 for services to be provided in the future. What is the liability amount to be recorded?

d. On January 1st, 2021, NYMC Care bought 10,000 shares of ABC Company stock worth $100 per share. On December 31st, 2021, the same stock closed at a price of $120 per share. If we were to show this on the balance sheet as of December 31, 2021, how much would we record for the total value of the stocks?

e. On December 1st 2020, UPMC bought 250 shares of XYZ Company stock worth $1,000 per share. On December 31st, 2020, the same stock closed at a price of $900 per share and on December 31st, 2021, the stock closed at a price of $1,200. How much would we record for the total value of stocks as of December 31st, 2020? What value would be recorded on December 31, 2021?