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When a corporation accepts an asset other than cash, the accountant records the asset at what value? When the fair market value is not determinable, what price is used?

User Dylan Tack
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Final answer:

When a corporation accepts an asset other than cash, the accountant records the asset at its fair market value. If the fair market value cannot be determined, the book value is used instead.

Step-by-step explanation:

When a corporation accepts an asset other than cash, the accountant records the asset at its fair market value. However, if the fair market value is not determinable, the accountant will use the book value of the asset instead. The book value is the value at which the asset is recorded on the company's books, typically the original cost of the asset minus any accumulated depreciation.

User Jasper Kent
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