Answer:D. The holding period of the office building includes the holding period of the factory building
Explanation:
The holding period simply refers to the period of time that a particular investment is being held by an investor.
The holding period csn.also be referred to as the period between when a security is purchased and when it is sold.
With regards to the question, the holding period of the office building includes the holding period of the factory building. Therefore, the correct option is D.
Answer:
Historical costs is objectively and precisely measured, whereas market values can be difficult to estimate, and different analysts would come up with different
values.
Explanation:
In preparing a balance sheet it is customary for a company to value the assets and other items based on historical costs rather than market values.
For example if an asset is purchased at $20,000, this value will reflect in the balance sheet in subsequent years. Or future calculation will be based on this.
Let's say yearly depreciation is $1,000 then after on year the value will be $19,000, after two years $18,000 and so on.
This is more object than market value which varies at any one time.
Market value for an item will vary depending on location and the market.
