Which of the following long-lived assets presents the most difficult in determining its cost?
A) Equipment.
B) Inventory.
C) Patent.
D) All the above are equally difficult in determining cost.

Question

Quizplus · Accepted Answer

Patents present the most difficulty in determining their cost as they often involve research and development costs, legal fees, and other expenses. Additionally, it is challenging to estimate the future economic benefits of a patent, making it difficult to determine an appropriate cost basis. Equipment and inventory have more straightforward cost determinations based on their purchase price or production cost.

Which of the Following Long-Lived Assets Presents the Most Difficult