Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Brief Exercises - Page 70: BE2-11a

Answer

(a) Land - In the books, the land would be recorded at its net realizable value, also known as its liquidation value, rather than its historical cost.

Work Step by Step

If the going concern principle is not applied, then all assets are translated into current assets, and they would also be listed at their net realizable/liquidation value.
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