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An Accountant Is Not Sure on How to Recognise an Asset

Question 58

Multiple Choice

An accountant is not sure on how to recognise an asset that is purchased in excess of fair value.Which of the following action will you recommend?


A) Recognise the asset at fair value and the excess as Goodwill.
B) Recognise the asset at fair value and the excess as a loss on purchase.
C) Recognise the asset at fair value and the excess as receivable from supplier.
D) Recognise the asset at cost.
E) None of the given answers.

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