Firms Sometimes Acquire Assets by Exchanging an Asset Other Than

question 55

Multiple Choice

Firms sometimes acquire assets by exchanging an asset other than cash or by issuing common stock.In these cases, acquisition cost is

• A)the fair value of the asset received, only.
• B)the fair value of the consideration given, only.
• C)either the fair value of the consideration given or the fair value of the asset received, depending on which amount is lower.
• D)either the fair value of the consideration given or the fair value of the asset received, depending on which the firms can more reliably measure.
• E)either the fair value of the consideration given or the fair value of the asset received, depending on which amount is higher.

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Definitions:

Electron Transport Phosphorylation

The process through which ATP is produced during the final stages of cellular respiration in the mitochondria, driven by the electron transport chain.

Aerobic Organisms

Living beings that require oxygen to survive and to carry out cellular respiration.

Final Electron Acceptor

A molecule that accepts electrons at the end of an electron transport chain, facilitating the conservation of energy in the form of ATP.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins.