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.
D
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Capitalization of interest results in interest being added to a fixed asset instead of expensed
Indicate whether the statement is true or false