ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 109

S30. Historical cost is the basis advocated for recording the
acquisition of property, plant, and equipment for all of the
following reasons except

a. at the date of acquisition, cost reflects fair market value.

b. property, plant, and equipment items are always acquired
at their original historical cost.

c. historical cost involves actual trans-actions and, as such, is
the most reliable basis.