Firms Sometimes Acquire Assets by Exchanging an Asset Other Than

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.