July 2016, E-Vision Ltd acquired a machine for $120,000. On the acquisition date, the useful lOne of our major believes in accounting is to be conservative. We look at inventory and use the lower of ife of

One of our major believes in accounting is to be conservative. We look at inventory and use the lower of cost or market to value inventory. With fixed assets we typically stay at cost and not record increases in value because the increase is not realized until sold. Why do you think we choose to not realize the increase in cost?