Under historical cost basis, how should Julia record her antique printing press?

When considering how Julia should record her antique printing press under the historical cost basis, it is essential to recognize that this accounting principle dictates that assets should be recorded at their original purchase price or acquisition cost. In this scenario, if the correct historical cost is indeed understood to be $5,000, Julia should record the printing press at this amount.

The historical cost basis does not take into account any future potential appreciation in value or subsequent market conditions; it purely reflects the price paid at the time of acquisition. Therefore, if she purchased the antique printing press for $5,000, this is the amount that will be recorded on her financial statements.

This approach ensures accuracy and consistency in financial reporting, as it provides a reliable measure of asset value based on actual transactions. Should the figures presented in the other choices be assessed, they would not represent the accurate initial cost of the item as required by the historical cost principle, thus solidifying $5,000 as the appropriate amount for recording the antique printing press.