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The owner of a business is planning to include his premises as an asset in the end-of-year balance sheet at cost value of 200,000. However,

The owner of a business is planning to include his premises as an asset in the end-of-year balance sheet at cost value of 200,000. However, the finance manager feels that this is too low a value and says that the premises should be included at 250,000, since this is what they could presently be sold for. How should the premises be valued?

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