Governmental entities should recognize revenue from donated fixed assets that will be sold to support programs of the entity at which amount in their government-wide financial statements?
A) historical cost to the donor.
B) book value in the hands of the donor.
C) fair value of the donated assets.
D) zero.

Question

Quizplus · Accepted Answer

Governmental entities should recognize revenue from donated fixed assets at fair value in their government-wide financial statements. This reflects the current value of the asset and is consistent with accounting principles for recognizing revenue from other sources.

Governmental Entities Should Recognize Revenue from Donated Fixed Assets That