Final answer:
The cost of an exchange of PPE with no cash price should be measured using the concept of fair value, which represents the market value of the asset. Fair value can be determined through similar assets with cash prices, market transactions, or independent appraisals.
Step-by-step explanation:
When there is no cash price for the exchange of PPE (Property, Plant, and Equipment), the cost of the exchange should be measured using the concept of fair value. The cost of an exchange of PPE with no cash price should be measured using the concept of fair value, which represents the market value of the asset. Fair value can be determined through similar assets with cash prices, market transactions, or independent appraisals.
Fair value represents the amount at which an asset could be exchanged between knowledgeable and willing parties in a transaction at arm's length. In this case, the fair value of the PPE should be determined based on similar assets that have a cash price, market transactions, or independent appraisals. By using fair value, we can ensure that the cost of the exchange accurately reflects the current market value of the PPE.