The Maxim Company Acquired a Building for $500,000

Multiple Choice

The Maxim Company acquired a building for $500,000. Maxim had the building appraised, and found that the building was easily worth $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Maxim to record the building on its records at $500,000?

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