Which of the following statements is/are true concerning property, plant and equipment (PPE)? I. PPE acquired by donation should be recorded at the fair value of the donated asset at the time of donation. II. When a group of assets is acquired for a lump-sum price, the total cost should be allocated to the individual assets based on their carrying amounts. III. Property acquired in exchange for shares or other securities in the enterprise should always be recorded the fair value of the securities issued. IV. When a property is acquired in exchange for another asset and both the fair value of the asset given up and the asset received are clearly determinable, its cost is usually determined by reference to the fair value of the asset given up. V. When an asset is acquired under a deferred payment plan, the asset is recorded at its cash equivalent price. If the cash equivalent price is not reliably determinable, the asset cost if the total of the undiscounted future cash payments required by the debt. I, IV and V I only I and IV I, III and IV
Which of the following statements is/are true concerning property, plant and equipment (PPE)? I. PPE acquired by donation should be recorded at the fair value of the donated asset at the time of donation. II. When a group of assets is acquired for a lump-sum price, the total cost should be allocated to the individual assets based on their carrying amounts. III. Property acquired in exchange for shares or other securities in the enterprise should always be recorded the fair value of the securities issued. IV. When a property is acquired in exchange for another asset and both the fair value of the asset given up and the asset received are clearly determinable, its cost is usually determined by reference to the fair value of the asset given up. V. When an asset is acquired under a deferred payment plan, the asset is recorded at its cash equivalent price. If the cash equivalent price is not reliably determinable, the asset cost if the total of the undiscounted future cash payments required by the debt. I, IV and V I only I and IV I, III and IV
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following statements is/are true concerning property, plant and equipment (PPE)?
I. PPE acquired by donation should be recorded at the fair value of the donated asset at the time of donation.
II. When a group of assets is acquired for a lump-sum price, the total cost should be allocated to the individual assets based on their carrying amounts.
III. Property acquired in exchange for shares or other securities in the enterprise should always be recorded the fair value of the securities issued.
IV. When a property is acquired in exchange for another asset and both the fair value of the asset given up and the asset received are clearly determinable, its cost is usually determined by reference to the fair value of the asset given up.
V. When an asset is acquired under a deferred payment plan, the asset is recorded at its cash equivalent price. If the cash equivalent price is not reliably determinable, the asset cost if the total of the undiscounted future cash payments required by the debt.
I. PPE acquired by donation should be recorded at the fair value of the donated asset at the time of donation.
II. When a group of assets is acquired for a lump-sum price, the total cost should be allocated to the individual assets based on their carrying amounts.
III. Property acquired in exchange for shares or other securities in the enterprise should always be recorded the fair value of the securities issued.
IV. When a property is acquired in exchange for another asset and both the fair value of the asset given up and the asset received are clearly determinable, its cost is usually determined by reference to the fair value of the asset given up.
V. When an asset is acquired under a deferred payment plan, the asset is recorded at its cash equivalent price. If the cash equivalent price is not reliably determinable, the asset cost if the total of the undiscounted future cash payments required by the debt.
I, IV and V
I only
I and IV
I, III and IV
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