Record the building at current market value plus transfer

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ER Ltd. received a building as a donation at no cost, except for transfer costs and some ordinary repair costs. The company agreed to start operations within one year with an expected payroll for 1,000 employees. The preferred financial accounting at the transfer date is for ER to

Question 1. record the building at its current market value plus transfer costs and repair costs

Question 2. record the building at its current market value less transfer and repair costs

Question 3. make only a memorandum entry (i.e. no journal entry) to reflect that there was no acquisition cost

Question 4. record the building at market value plus transfer costs

Reference no: EM132587846

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