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A Plant Site Donated by a City to a Manufacturer

Question 1

Multiple Choice

A plant site donated by a city to a manufacturer that plans to open a new factory should be recorded on the manufacturer's books at


A) the nominal cost of taking title to it.
B) its market value.
C) one dollar (since the site cost nothing but should be included in the statement of financial position) .
D) the value assigned to it by the company's directors.

Correct Answer:

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