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Exercise 2.4 (Static) Accounting Principles and Asset Valuation (LO2-2) The following cases relate to the valuation of assets. Consider each case independently. Required: a. World-Wide Travel Agency has office supplies costing $1,400 on hand at the balance sheet date. These supplies were purchased from a supplier that does not give cash refunds. World-Wide's management believes that the company could sell these supplies for no more than $500 if it were to advertise them for sale. However, the company expects to use these supplies and to purchase more when they are gone. What amount should be listed for office supplies on World-Wide's balance sheet? b. Perez Corporation purchased land in 1957 for $40,000. In the current year, it purchased a similar parcel of land for $300,000. What amount should be listed for land on Perez's balance sheet? c. At December 30 , year 1, Felix, Incorporated, purchased a computer system from a mail-order supplier for $14,000. The retail value of the system-according to the mail-order supplier-was $20,000. On January 7 , however, the system was stolen during a burglary. What amount should be listed for the computer system on Felix's December 3ist balance sheet (the balance sheet in question was issued in February, year 2)? Exercise 2.4 (Static) Accounting Principles and Asset Valuation (LO2-2) The following cases relate to the valuation of assets. Consider each case independently. Required: a. World-Wide Travel Agency has office supplies costing $1,400 on hand at the balance sheet date. These supplies were purchased from a supplier that does not give cash refunds. World-Wide's management believes that the company could sell these supplies for no more than $500 if it were to advertise them for sale. However, the company expects to use these supplies and to purchase more when they are gone. What amount should be listed for office supplies on World-Wide's balance sheet? b. Perez Corporation purchased land in 1957 for $40,000. In the current year, it purchased a similar parcel of land for $300,000. What amount should be listed for land on Perez's balance sheet? c. At December 30 , year 1, Felix, Incorporated, purchased a computer system from a mail-order supplier for $14,000. The retail value of the system-according to the mail-order supplier-was $20,000. On January 7 , however, the system was stolen during a burglary. What amount should be listed for the computer system on Felix's December 3ist balance sheet (the balance sheet in question was issued in February, year 2)

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