Fixed Assets and Depreciation Accounting Test
Module 6 • 10 Questions
Question 1 of 10
0 of 10 answered
A listed company acquires high-tech equipment. The seller quotes Rs 60 crore but agrees to accept 1 crore equity shares of the buyer instead of cash. The buyer's shares trade at Rs 58. At what value should the equipment be recorded?
A
Rs 58 crore, the fair value of the securities given up
B
Rs 2 crore, the difference between the quote and the share value, treated as a discount
C
Rs 60 crore, because that is the seller's quoted price for the asset
D
Rs 59 crore, the average of the quote and the market value of the shares