Three years ago,Michelle bought a custom-made bookcase to fit in the corner of her apartment.She paid $1,000 for it.To replace it today would cost $1,500;however,if she had to sell it,she believes she could get only $700.The appropriate balance sheet amount for the bookcase is
A)$1,000.
B)$1,500.
C)$ 700.
D)$1,200.

Question

Quizplus · Accepted Answer

The appropriate balance sheet amount for the bookcase is its current market value, which is the amount Michelle believes she could get if she had to sell it today, which is $700.

Three Years Ago,Michelle Bought a Custom-Made Bookcase to Fit in the Corner