When Phil lists his house on his balance sheet,he should record the
A) actual purchase price.
B) replacement value.
C) insured value.
D) sale price.
E) fair market value.

Question

Quizplus · Accepted Answer

When listing an asset, such as a house, on a balance sheet, it is best to record its fair market value. This represents the current value of the asset if it were to be sold in the current market conditions. This value is more relevant than the actual purchase price, replacement value, insured value, or sale price, as these values may have changed since the asset was acquired.

When Phil Lists His House on His Balance Sheet,he Should