Martin Corporation purchased land in 2013 for $290,000.In 2022, it purchased a nearly identical parcel of land for $460,000.In its 2022 balance sheet, Martin valued these two parcels of land at a combined value of $920,000.By reporting the land in this manner, Martin Corp.has violated the

Question

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The historical cost principle dictates that assets should be recorded at their original cost. By valuing the two parcels of land at a combined value of $920,000, which is greater than their original cost, Martin Corporation has violated the historical cost principle.

Martin Corporation Purchased Land in 2013 for $290,000