In exchanges of plant assets with commercial substance, the new asset received will be recorded at its market value.

Question

Quizplus · Accepted Answer

When exchanging plant assets with commercial substance, the new asset received will be recorded at its fair market value. This is in accordance with the cost principle of accounting, which states that assets should be recorded at their historical cost or fair market value at the time of acquisition.

In Exchanges of Plant Assets with Commercial Substance, the New