Which of the Following Is INCORRECT About the Measurement of Purchased

question 26

Multiple Choice

Which of the following is INCORRECT about the measurement of purchased intangible assets?

• A) Purchased intangible assets are measured at cost, which is their fair value at acquisition.
• B) Cost includes the acquisition cost and all expenditures necessary to make the intangible asset ready for its intended use.
• C) If an intangible asset is acquired due to a government grant, the asset is not recognized in the accounting records as there is no cost to the entity receiving the intangible asset.
• D) The cost of the intangible received in a nonmonetary exchange is the fair value of the consideration given or the fair value of the intangible received, whichever is more clearly evident.

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