Relevant measure of the value of equipment


An Oklahoma City business paid $15,000 cash for equipment used in the business. At the time of purchase, the equipment had a list price of $20,000. When the balance sheet was prepared, the value of the equipment later rose to $22,000. What is the relevant measure of the value of the equipment?

A. Historical cost, $15,000

B. Fair market cost, $20,000

C. Current market cost, $22,000

D. $15,000 on the day of purchase, $22,000 on balance sheet date

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Relevant measure of the value of equipment
Reference No:- TGS048531

Expected delivery within 24 Hours