A donated plant asset for which the fair value has been determined,and for which incidental costs were incurred in acceptance of the asset,should be recorded at an amount equal to its

Question

Quizplus · Accepted Answer

The donated plant asset should be recorded at fair value, which includes any incidental costs incurred in acceptance of the asset. Option A is incorrect because it only includes the incidental costs and not the fair value of the asset. Option C is incorrect because the book value on donor's books may not be relevant to the recipient organization's reporting needs. Option D is incorrect because the book value on the donor's books may not reflect the current fair value of the asset.

A Donated Plant Asset for Which the Fair Value Has