On January 1, 1996, you purchased a piece of property for $10,000. On December 31 of that year you sold the property for $20,000. Assume that the general rate of inflation for 1996 was 10 percent. REQUIRED:

a. According to generally accepted accounting principles, how much gain would be recorded in the income statement due to the sale of the property?

b. The $10,000 you used to purchase the property on January 1 could have been used to pur¬ chase any number of goods and services on January