The Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Superior to record the building on its records at $500,000?
A. Business entity assumption.
B. Revenue recognition principle.
C. Going-concern assumption.
D. Monetary unit assumption.
E. Measurement (Cost) principle.
Answer: E
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