Question

At which cost the fixed asset should be booked in books which are acquired in exchange or in part exchange?
O At its Fair Market Value
O Net book value of the asset given up, which is adjusted for balance payment
O Either 'A' or 'B' above
O None of the options​

Answer 1

Answer:

When a fixed asset is acquired in exchange or in part exchange for another asset, the cost of the asset acquired should be recorded either at fair market value or at the net book value of the asset given up, adjusted for any balancing payment or receipt of cash or other consideration.

Answer 2

Either A or B should be right answer