Question

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?

Answer 1

Historical cost principle

Step-by-step 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.