Asked by Jasmine Agosto on May 01, 2024
Verified
The fair value of a plant asset is always the same as its book value.
Fair Value
An estimate of the market value of an asset or liability, based on current prices in an orderly transaction between market participants.
Book Value
Book value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.
- Gain an understanding of the notion of book value and contrast it with fair market value.
Verified Answer
MG
Marc-Anthony GarciaMay 02, 2024
Final Answer :
False
Explanation :
The fair value of a plant asset may differ from its book value depending on market conditions and other factors.
Learning Objectives
- Gain an understanding of the notion of book value and contrast it with fair market value.
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