Roberts Construction Group paid $11,000 for a plant asset that had a market value of $20,500.At which of the following amounts should the plant asset be recorded?

Name: Roberts Construction Group paid $11,000 for a plant asset that had a market value of $20,500.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 historical cost, which is the amount paid for it, $11,000, not its market value.

Roberts Construction Group Paid $11,000 for a Plant Asset That