The amount that an asset is recorded at is based on

Question

Quizplus · Accepted Answer

The amount that an asset is recorded at is based on the exchange price at the date of recognition of the asset, which is the amount paid to acquire the asset or the fair value of what was given up in exchange for the asset. A is incorrect because fair market value may not always be used, especially if the exchange is not made in an open market. B and D do not accurately reflect the true value of the asset acquired.

The Amount That an Asset Is Recorded at Is Based