In a "basket" or "lump-sum" purchase of assets, which of the following best describes the process by which the historical cost of the various assets acquired should be determined?
a. Allocation of the total cost to the individual assets on the basis of the historical cost of the individual assets to their original owner.
b. Allocation of the total cost to the individual assets on the basis of the fair market value of the individual assets at the time of the "basket" purchase.
c. Recording of the individual assets at their current value with recognition of a gain or loss for the difference between the price paid for the assets and the current value of the individual assets.
d. Recording of the individual assets at their original historical cost to the seller with a gain or loss recognized as the difference between the total of the original historical cost figures and the price paid in the basket purchase.
B
You might also like to view...
An "incipient market" is a market that will emerge if a particular economic, demographic, political, or sociocultural trend continues in a country
Indicate whether the statement is true or false
When announcing negative organizational news, how should the writer determine the correct format of the message?
A) The organization should develop boilerplate messages for a variety of scenarios and then choose the most appropriate. B) The organization should determine which format best matches the specific situation. C) The organization should use a plan that is fair and consistent. D) The organization should present the information in the most positive way possible. E) The organization should determine what information can be safely kept from public consumption.
Which of the following variations cannot be predicted and can be identified only after occurrence?
A. random variations B. irregular variations C. seasonal variations D. cyclical variations
The types of product defects that have traditionally been recognized in product liability law include inadequate warnings
a. True b. False Indicate whether the statement is true or false