If Differences Between the Fair Value and the Book Value

question 24

Multiple Choice

If differences between the fair value and the book value of recorded assets are identifiable, appropriate adjustments to asset balances should be considered.Since a change in ownership structure creates a new, distinct legal entity, every attempt should be made to identify differences between fair and:

• A)​Depreciation
• B)Book Values​
• C)​Partners Capital
• D)​Goodwill