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Identify the accounting assumption that best applies to each of the following situations. a. Wendy's, the restaurant chain, sold a store location to Burger King.
Identify the accounting assumption that best applies to each of the following situations. a. Wendy's, the restaurant chain, sold a store location to Burger King. How can Wendy's determine the sale price of the store: by a professional appraisal, Wendy's cost, or the amount actually received from the sale? The amount received from the sale. b. If Trammel Crow Realtors had to liquidate its assets, their value would be less than carrying amounts of the assets. Trammel Crow Realtors will stay in business long enough to use existing assets for their intended purposes. c. Toyota Canada wants to determine which division of the companyToyota or Lexusis more profitable. Each division records information as a separate economic unit. d. You get an especially good buy on a laptop, paying only $399 for a computer that normally costs $799. What is your accounting value for this computer? Assets should be recorded at actual cost of purchase. Going-concern assumption Historical-cost assumption Separate-entity concept Stable-money assumption
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