One advantage of recording property, plant, and equipment at historical costs is that historical cost is equal to the fair value on the purchase date.

Question

Quizplus · Accepted Answer

Historical cost is the original monetary value of an asset at the time of purchase, which is equal to the fair value on the purchase date, assuming the transaction occurs under normal conditions and reflects the market value of the asset at that time.

One Advantage of Recording Property, Plant, and Equipment at Historical