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    Challenges in recording and fairly valuating fixed assets

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    What are some of the challenges in recording and fairly valuating fixed assets in an organization?

    © BrainMass Inc. brainmass.com March 4, 2021, 9:21 pm ad1c9bdddf
    https://brainmass.com/business/accounting/challenges-recording-fairly-valuating-fixed-assets-237466

    Solution Preview

    There are a number of problems associated with determining the cost basis of a fixed asset on the balance sheet. The following are several examples:

    1. The total cost of an asset includes all the costs to get it into service. Some of those costs can include shipping, installation, sales tax, permits, and ...

    Solution Summary

    This solution presents seven different scenarios where the valuation of fixed assets is not necessarily straight-forward.

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