The Superior Company Acquired a Building for $500,000

Multiple Choice

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) Monetary unit assumption.
D) Measurement (Cost) principle.
E) Going-concern assumption.