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:

Function

The specific role or activity that an entity or process is designed to perform or execute.

Nursing Association

A professional organization for nurses aimed at promoting their rights, setting standards for practice, and providing educational resources.

Homogeneous Group

A group comprised of members who have similar characteristics, background, or traits.

Developmental Group

A collection of individuals grouped together based on their developmental stage or progress.