The following events occurred for Johnson Company: Received investment of cash by organizers and distributed to them 1,170 shares of $1 par value common stock with a market price of $15 per share. Purchased $8,100 of equipment, paying $1,200 in cash and owing the rest on accounts payable to the manufacturer. Borrowed $11,000 cash from a bank. Loaned $700 to an employee who signed a note. Purchased $22,375 of land; paid $9,000 in cash and signed a note for the balance.

Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or principle is the rationale for why plant assets are not reported at liquidation value. (note: do not use the historical cost principle.) (b) select the accounting assumption or principle indicates that personal and business record-keeping should be separately maintained. (c) select the accounting assumption or principle assumes that the dollar is the "measuring stick" used to report on financial performance. (d) select the accounting assumption or principle separates financial information into time periods for reporting purposes. (e) select the accounting assumption or principle measurement basis used when a reliable estimate of fair value is not available. (f) select the accounting assumption or principle dictates that companies should disclose all circumstances and events that make a difference to financial statement users.

True or false: on january 1, year one, the epstein corporation buys a plot of land with a four-story office building. the company believes the building is worth $1.9 million and has an estimated life of twenty years (with no anticipated residual value). the straight-line method is used. the land has an assessed value of $100,000. because the seller was interested in a quick sale, epstein was able to buy this land and building for $1.7 million. depreciation expense to be recognized in year one is $80,750.

Why has the free enterprise system been modified to include some government intervention?