Donated assets are recorded at:
A) Zero (memo entry only).
B) The donor's book value.
C) The donee's stated value.
D) Fair value.

Question

Quizplus · Accepted Answer

Donated assets are recorded at fair value, which represents the most accurate and relevant measure of the asset's worth at the time of the donation. Fair value is the amount that would be received to sell the asset in an orderly transaction between market participants at the measurement date (e.g., the date of the donation). It reflects all of the factors that market participants would consider in setting a price, such as the asset's condition, location, and market demand. As such, fair value ensures that the financial statements of the donee organization provide users with reliable and transparent information about the value and nature of the donated assets.

Donated Assets Are Recorded At