Roberts Construction Group paid $5,000, for a plant asset that had a market value of $7,500. At which of the following amounts should the plant asset be recorded?

Name: Roberts Construction Group paid $5,000, for a plant asset that had a market value of $7,500. At which of the following amounts should the plant asset be recorded?
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Question

Quizplus · Accepted Answer

The plant asset should be recorded at its cost, which is the amount paid for it, $5,000, according to the historical cost principle in accounting.

Roberts Construction Group Paid $5,000, for a Plant Asset That