For each of the following short cases, using the ASC, state the question(s) and use the guidance sandwich approach .Be sure to include the full ASC cite(s) (down to the paragraph level). You may have more than one cite. Use the example below as a guide:

o Example scenario: Should inventory be measured initially at its market value or at cost?

o Example answer: question: Should inventory be measured initially at its market value or at cost?

ASC 330-10-30-1 states the following with respect to the initial measurement of inventory: "The primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset. As applied to inventories, cost means in principle the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. It is understood to mean acquisition and production cost, and its determination involves many considerations.

That is, par. 30-1 requires the initial recording of inventories to be measured at cost, not at market value.

Cases: 1. Accounting for an Investment Your company purchased 100 shares of Tesla Stock on November 4, 2022 at a price of $207.47 per share. At fiscal year-end (December 31, 2022), the stock price had decreased to $123.18 per share. Your supervisor is arguing that no adjustment is required to the recorded value of the investment at year end and that it is appropriate to maintain the investment at cost. Respond to this position by researching the issue in the ASC.

2. New Corporate Headquarters Your company plans to build a new corporate headquarters. In doing so, the company will incur construction costs ($6,500,000), permit fees from the city ($85,000) and costs to design architectural plans ($125,000). Your supervisor has asked you to determine which of these costs should be included in the capitalized value of the building.