Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 9 - Reporting and Analyzing Long-Lived Assets - Questions: 2

Answer

Cost is measured by the cash paid in a cash transaction or by the cash equivalent price paid when companies use non cash assets in payment.

Work Step by Step

The cash equivalent price is equal to the fair marker value of the asset given up or the fair market value of the asset received, whichever is more clearly determinable.
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