Fred Bosin donated land and a building to Palma City in 2006. Bosin's cost of the land and building was $100,000. Accumulated depreciation of the building on the date of the gift amounted to $60,000. Current fair value of the land and building on the date of the gift was $300,000. In a journal entry for the voluntarily maintained general capital assets account group, the total amount to be recorded for the donated plant assets is:

Question

Quizplus · Accepted Answer

The correct amount to record for the donated plant assets is their current fair value on the date of the gift, which is $300,000. This reflects the value that the city would recognize for the assets received without cost.

Fred Bosin Donated Land and a Building to Palma City