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X Company bought real estate properties in Texas 50 years ago for $30,000. In 2020, a real estate appraiser inspects the properties and concludes that

"X" Company bought real estate properties in Texas 50 years ago for $30,000. In 2020, a real estate appraiser inspects the properties and concludes that their expected market value is $2million. The company has been using historical accounting principles for the last 50 years. A newly appointed financial manager recommends the use of fair value accounting for the value of the properties. Discuss the difference between the two approaches. Do you agree with the financial manager? and state your reason why or why not? (25marks)

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