Intangible assets acquired solely from other entities or individuals should be r

Question

Intangible assets acquired solely from other entities or individuals should be recorded at cost at date of acquisition. Cost may not be measured by which of the following? A. Net carrying amount of the previous owner. B. Amount of cash disbursed. C. Present value of amounts to be paid for liabilities incurred. D. Fair value of other assets distributed. Intangible assets acquired solely from other entities or individuals should be recorded at cost at date of acquisition. Cost may not be measured by which of the following? A. Net carrying amount of the previous owner. B. Amount of cash disbursed. C. Present value of amounts to be paid for liabilities incurred. D. Fair value of other assets distributed.

Explanation / Answer

Answer:

The general principal is that intagible assets which are acquired from others shall be recorded at their fair value. Therefore, in the given question The cost of the intagible assets may not be measured on the basis of Net Carrying Amount of the Previuos Owner.

The correct answer to the given question is Option A. Net carrying amount of the previous owner.

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