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

Question

Quizplus · Accepted Answer

The recorded cost of a nonmonetary asset acquired in exchange for another nonmonetary asset is usually the fair market value of the asset given up or the fair market value of the asset received, whichever is more clearly evident, not the book value of the asset given up.

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