The Maximum Experience Company Acquired a Building for $500,000

Multiple Choice

The Maximum Experience Company acquired a building for $500,000.Maximum Experience had an appraisal done and found that the building was worth $575,000.The seller had paid $300,000 for the building 6 years ago.Which accounting principle would prescribe that Maximum Experience record the building on its records at $500,000?

A) Monetary unit principle
B) Going-concern principle
C) Cost principle
D) Business entity principle
E) Revenue recognition principle