According to ASC Topic 820, the fair value of an asset should be based upon

17. According to ASC Topic 820, the fair value of an asset should be based upon
a. The price that would be paid to acquire the asset.
b. The price that would be paid to replace the asset.
c. The price that would be received to sell the asset.
d. The price that the item is appraised at balance sheet date.

18. Which of the following items does not require measurement at fair value on the balance sheet?
a. Asset impairments.
b. Treasury stock.
c. Business combinations.
d. Goodwill.

Expert Solution

Ans 17. C is the correct option. ASC topic 820 . require that the fair value of an asset be. based upon the price that would be. received to sell the asset, which is an. exit price.

Ans 18. B is the correct option. ASC topic 820 . measuring the FV of balance sheet. items. asset impairment, business. combination, goodwill.

ekkarill92 answered 2 years ago

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