The authoritative executional framework assumes consumers and business decision-makers rely on cognitive processes when making purchase decisions

Elway Company purchases land for $85,000 cash. Elway assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Elway has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Elway record as the cost for the land?

a. $88,200 b. $100,700 c. $90,700 d. $85,000

Several sources of US GAAP consulted by an auditor are in conflict as to the application of an accounting principle. Which of the following should the auditor consider the most authoritative?

a. FASB Accounting Standards Codification b. International Financial Reporting Standards (IFRS) c. FASB Statements of Financial Accounting Concepts d. AICPA Issues Papers