Question
Sawyer Corporation purchased land in 2009 for $490,000. In 2015, it purchased a nearly identical parcel of land for $660,000. In its 2015 balance sheet,
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Sawyer Corporation purchased land in 2009 for $490,000. In 2015, it purchased a nearly identical parcel of land for $660,000. In its 2015 balance sheet, Sawyer valued these two parcels of land at a combined value of $1,320,000. By reporting the land in this manner, Sawyer Corporation has violated which of the following?
a.Cost principle
b.Going concern assumption
c.Time Period assumption
d.Monetary unit measure
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Accounting Principles A Business Perspective
Authors: Roger H. Hermanson, James Don Edwards, Michael W. Maher
1st Edition
1680921851, 978-1680921854
