The Duce Company has five plants nationwide that cost a total of $100 million.The current fair value of the plants is $500 million.The plants will be recorded and reported at

Question

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Under generally accepted accounting principles (GAAP), long-term assets like plants are recorded at their historical cost, not their current fair value. Therefore, the plants will be recorded at their purchase cost of $100 million.

The Duce Company Has Five Plants Nationwide That Cost a Total