In conformity with the historical cost principle, property donated to a corporation should be recorded by the recipient at the cost to the donor.

Question

Quizplus · Accepted Answer

In conformity with the historical cost principle, property donated to a corporation should be recorded by the recipient at fair market value at the time of donation, not at the cost to the donor. This is because the asset was not purchased by the corporation, but rather was given as a gift.

In Conformity with the Historical Cost Principle, Property Donated to a Corporation