Masonry Construction Group paid $10,000 for a plant asset that had a market value of $14,500. At which of the following amounts should the plant asset be recorded?

Name: Masonry Construction Group paid $10,000 for a plant asset that had a market value of $14,500. At which of the following amounts should the plant asset be recorded?
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Question

Quizplus · Accepted Answer

The plant asset should be recorded at the cost paid for it, which is $10,000. The market value at the time of purchase does not determine the cost of the asset.

Masonry Construction Group Paid $10,000 for a Plant Asset That