The cost and fair market value of an asset are the same at the time of acquisition and in all subsequent periods.

Name: The cost and fair market value of an asset are the same at the time of acquisition and in all subsequent periods.
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Question

Quizplus · Accepted Answer

The cost of an asset at the time of acquisition is its purchase price, whereas the fair market value can change over time due to factors like depreciation, market conditions, and improvements, making them not always the same after acquisition.

The Cost and Fair Market Value of an Asset Are