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:

Wheat Yields

The quantity of wheat produced per unit of land area, an important metric for evaluating agricultural productivity and economic viability for farmers.

Total Revenues

The full amount of income generated by the sale of goods or services before any expenses are subtracted.

Government Program

refers to an official initiative or project established and funded by a government to achieve specific goals or provide certain services to its citizens.

Land Under Cultivation

Land that is actively used for the production of crops and agricultural goods.