Assuming No Impairment in Value Prior to Transfer,assets Transferred by a Parent

question 53

Multiple Choice

Assuming no impairment in value prior to transfer,assets transferred by a parent company to another entity it has created should be recorded by the newly created entity at the assets':

• A)cost to the parent company.
• B)book value on the parent company's books at the date of transfer.
• C)fair value at the date of transfer.
• D)fair value of consideration exchanged by the newly created entity.

---

Definitions:

Spontaneous Remission

The unexpected improvement or cure of a disease or condition that appeared permanently, without medical intervention.

Therapies

Treatment methods aimed at relieving illness or psychological problems.

Effectiveness

The degree to which something achieves its intended outcome or fulfills its purpose.

Spontaneous Remission

The unexpected improvement or cure of a disease or condition which occurs without any medical treatment or intervention.