A construction company paid $80,000 cash for equipment used in the business.At the time of purchase,the equipment had a list price of $90,000.When the balance sheet was prepared,the fair value of the equipment was $83,000.At what amount should the equipment be reported on the balance sheet of the company?

Question

Quizplus · Accepted Answer

The equipment should be reported at its historical cost, which is the amount paid for it, $80,000.

A Construction Company Paid $80,000 Cash for Equipment Used in the Business.At