When asset(s) are acquired, those assets must initially be recorded at the:
A)cost of acquisition
B)cost of acquisition only if a business has been acquired
C)cost of acquisition for all acquisitions other than acquisition of a business
D)lower of the cost of acquisition and the fair value of the assets acquired

Question

Quizplus · Accepted Answer

When an asset is acquired, it should be initially recorded at the cost of acquisition. This includes tangible assets such as property, plant, and equipment as well as intangible assets like patents and copyrights. The cost of acquisition includes all costs necessary to get the asset ready for its intended use, such as purchase price, transportation costs, installation costs, and any other costs directly attributable to the acquisition of the asset.

When Asset(s) Are Acquired, Those Assets Must Initially Be Recorded