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24 October, 07:40

Identify the accounting concept, assumption, or principle that best applies to each of the following situations:

a. Burger King , the restaurant chain, sold a store location to McDonald 's. How can Burger King determine the sale price of the store - by a professional appraisal, Burger King original cost, or the amount actually received from the sale?

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  1. 24 October, 07:58
    0
    Historical cost principle

    Explanation:

    Under historical cost principle, assets and liabilities are reported in the balance sheet of the entity at their purchase price, even of their current price has changed.
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