Non-current debt instruments exchanged for assets are recognized at:
A)book value.
B)fair value.
C)cash paid.
D)cash equivalents paid.

Question

Quizplus · Accepted Answer

Non-current debt instruments exchanged for assets are recognized at fair value. Fair value is the most reliable measure of the value of the debt instrument at the time of exchange. Book value, cash paid, or cash equivalents paid may not accurately reflect the current value of the debt instrument or asset.

Non-Current Debt Instruments Exchanged for Assets Are Recognized At