Property acquired through donation is recorded at

Question

Quizplus · Accepted Answer

Property acquired through donation is recorded at its fair market value on the date of the donation. This is because the fair market value is a more accurate reflection of the property's current worth, which is important for financial reporting and tax purposes. The cost or book value may be lower or higher than the fair market value, which could distort the organization's financial statements. Zero is not an appropriate value to record donated property because it implies that the organization did not receive any assets, which is not accurate.

Property Acquired Through Donation Is Recorded at