Williams Washing Machines Pty Ltd Purchased Second-Hand Equipment for Its

Multiple Choice

Williams Washing Machines Pty Ltd purchased second-hand equipment for its operation for $25,000. The equipment was worth $35,000. Applying the cost principle, how much should the equipment be recorded at in Williams Washing Machines' statement of financial position?

A) $25,000.
B) $35,000.
C) $30,000 (which is the average of the two prices) .
D) The company could choose either $25,000 or $35,000.