Case 2: Your company is in the business of selling new pickup trucks that sell for $10,000 to $15,000 each. The company decides to purchase an antique sports car for $100,000 to sell at a future date at a profit. How would the antique car be treated at the time of purchase and sale versus the pickup trucks? Should it be different and why?

1. How would this be recording at the time of the purchase and sale. How would it appear on the income statement and balance sheet

2. Explain your answer using GAAP revenue recognition guidelines.