Suppose you are considering the purchase of a building. The seller is asking $250,000 for a building that cost her $125,000. An appraisal shows the building has a value of $225,000. You first offer $215,000. The seller counter offers with $245,000. Finally, you and the seller agree on a price of $235,000. What dollar amount for this building is reported on your financial statements? Which accounting assumption or principle guides your answer? ***

Suppose you are considering the purchase of a building The seller is asking $250,000 for a bulding that cost her $125,000. An appraisal shows the building has a value of $225,000. You first offer $215,000. The seller counter offers with $245,000. Finally, you and the seller agree on a price of $235,000. What dollar amount for this building is reported on your financial statements? Which accounting assumption or principle guides your