The fair value of a plant asset is equal to:
A)the amount the business could sell the asset for.
B)the amount of cash paid plus the dollar value of noncash consideration given in exchange for the plant asset at acquisition.
C)the amount of cash paid plus the loan taken out to finance the purchase of the plant asset.
D)the amount a company can receive for the asset when sold in order to go out of business.

Question

Quizplus · Accepted Answer

The fair value of a plant asset is the estimated amount that a business could sell the asset for in an arm's length transaction between willing parties. It is based on current market conditions and may differ from the cost of acquiring or constructing the asset.

The Fair Value of a Plant Asset Is Equal To