Discussion
Match the figure with its role in a replacement study.
1. Defender's market value 2. Defender's original first cost 3. Defender's book value
P. Sunk and irrelevant Q. The investment forgone by keeping the asset R. Relevant only through tax on disposal
Answer: A
Correct answer: 1-Q, 2-P, 3-R
The three figures have quite different standing. The market value is the investment forgone by keeping the asset, and it is the defender’s first cost for the purposes of the study. The original first cost is sunk and irrelevant. And the book value matters only because it fixes the taxable gain or loss on disposal.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development