Reference no: EM132898700

Problem 1: All of the following statements are true, except:

a. When a group of assets is acquired for a lump sum price, the lump sum price should be allocated to the individual assets based on their carrying values.

b. When property is acquired in exchange for another, its cost is usually determined by reference to the fair value of the asset surrendered

c. Donation of PPE should be recorded at the fair value of the donated asset

d. Property acquired in exchange for shares or other securities of the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evident

Problem 2: The sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale are

a. Greater than carrying amount

b. Greater than cost

c. Lesser than carrying amount

d. Less than current fair value

e. Lesser than cost