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

Question

Quizplus · Accepted Answer

The cost of an asset at the time of acquisition is its purchase price plus any costs necessary to bring the asset to its intended use. The fair value, however, can change over time due to market conditions, wear and tear, obsolescence, or other factors, leading to potential differences between an asset's cost and its fair value in subsequent periods.

The Cost and Fair Value of an Asset Are the Same