external reporting

Navas 28 April 2020 at 13:45 PM

Which of the following is not an appropriate basis for measuring the historical cost of fixed assets?
A) Proceeds obtained in the process of readying land for its intended purpose, such as from the sale of cleared timber, should be recognized immediately in income.
B) Special assessments imposed by a local government for sewage and drainage systems are recorded by the owner
of the land in the land account.
C) The purchase price, freight costs, and installation costs of a productive asset should be included in the asset's cost.
D) The costs of improvements to equipment incurred after its acquisition should be added to the asset's cost if they
provide future service potential.

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FACULTY 19 May 2020 at 03:05 PM

Proceeds obtained in the process of readying land for its intended purpose, such as from the sale of cleared timber, should be recognized immediately in income.(option A)

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