Case 2

Ben is the owner of all of the shares of a private corporation called Motorcycle Parts Unlimited Inc. The business sells motorcycle parts. Ben has had a very poor year and is showing a loss. The business owns a vintage motorcycle which Ben purchased for $75,000. He wants to write the value of the motorcycle up to $157,000 to reflect its true value and to reduce his loss in the current year. John, the accountant for Motorcycles Parts Unlimited Inc., is very concerned about this decision.

Which GAAP will guide John in deciding whether the vintage motorcycle should be increased in value on the company's books or not? Why?