Generally,the recorded cost of a nonmonetary asset acquired in exchange for some other nonmonetary asset is the fair value of the asset that was given up.

Question

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According to the GAAP (Generally Accepted Accounting Principles), the recorded cost of a nonmonetary asset acquired in exchange for some other nonmonetary asset is the fair value of the asset given up. This is known as the cost principle in accounting, which requires that assets are recorded at their original cost. This principle ensures that financial statements accurately reflect the value of the assets owned by the company.

Generally,the Recorded Cost of a Nonmonetary Asset Acquired in Exchange