Question

Lucky Lee, a video-game store in New York city, purchases a game machine directly from Taiwan for$30,000. In the U.S., the same machine will probably cost at least $36,000. Pick the most appropriateaccounting action for Lucky Lee:Record the machine at $36,000Record the machine at $30,000Record the machine for [($30,000+$36,000)/2] = $33,000Have the machine examined by an independent appraiser and record it at the appraised value

Answer 1

Record the machine at $30,000

Step-by-step explanation:

Since as we can see that the purchase value of the game machine is $30,000 and the other values are given

So based on the historical cost principle, the machine should be recorded at the purchased cost, acquired cost, original cost

here in the given situation, the machine is actually purchased at $30,000 so the same is to be recorded