The costs assigned to the individual assets acquired in a basket purchase is based on their relative
A)historical costs.
B)market values.
C)book values.
D)depreciable costs.

Question

Quizplus · Accepted Answer

The costs assigned to individual assets acquired in a basket purchase is based on their relative market values. This is because in a basket purchase, multiple assets are acquired for a single lump sum. Therefore, the cost of each asset cannot be identified separately. In this case, the cost is allocated to each asset based on its fair market value.

The Costs Assigned to the Individual Assets Acquired in a Basket