_____ On 4/4/06, Fox Inc. donated a building to Palma City. Fox Inc.'s original cost of the property was $100,000. Accumulated depreciation at the date of the gift was $60,000. The fair value of the gift was $300,000. At what amount should the city record this donated capital asset in the GCA-GLTL g/l,?

Question

_____	On 4/4/06, Fox Inc. donated a building to Palma City. Fox Inc.'s original cost of the property was $100,000. Accumulated depreciation at the date of the gift was $60,000. The fair value of the gift was $300,000. At what amount should the city record this donated capital asset in the GCA-GLTL g/l,?

Quizplus · Accepted Answer

When a government entity receives a donated capital asset, it should record the asset at its fair value at the time of the donation. In this case, the fair value of the donated building is $300,000.

_____ on 4/4/06, Fox Inc