AI XYZ Insurance Company built a new home office complex six years ago at the cost of $20 million. Commercial real estate values have increased in the area, and the building could now be sold for $26 million. XYZ lists the value of the building on its balance sheet at $15.2 million, a value that reflects depreciation. The value shown on the balance sheet is called the
A) Historical cost.
B) Mark-to-market value.
C) Depreciated cost.
D) Fair market value.

Question

07-06-2024
Business

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AI XYZ Insurance Company built a new home office complex six years ago at the cost of $20 million. Commercial real estate values have increased in the area, and the building could now be sold for $26 million. XYZ lists the value of the building on its balance sheet at $15.2 million, a value that reflects depreciation. The value shown on the balance sheet is called the
A) Historical cost.
B) Mark-to-market value.
C) Depreciated cost.
D) Fair market value.

Sagot :

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