Assume that Boxer Company can no longer satisfy the going concern assumption. If that is the case, how should each of the following be presented on Boxer's financial statements?
a. Land
b. Depreciation expense on production equipment
c. Merchandise inventory
d. Prepaid insurance
(a) Fair value.
(b) This would not be disclosed because depreciation would be inappropriate if the going concern assumption no longer applies.
(c) Fair value.
(d) Fair value, if an amount can be refunded
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