D is corrent. ASC Topic 958 states that both gains and losses on nonmonetary, nonreciprocal transfers (donations) are to be recorded. The gain or loss is calculated as the difference between the fair value of the nonmonetary asset transferred and its recorded amount at the date of donation. Gains or losses related to the nonreciprocal transfer of nonmonetary assets are recognized because they have been earned or incurred by the entity at the date of transfer.
A is incorrect. ASC Topic 958 states that both gains and losses on nonmonetary, nonreciprocal transfers (donations) are to be recorded. The gain or loss is calculated as the difference between the fair value of the nonmonetary asset transferred and its recorded amount at the date of donation. Gains or losses related to the nonreciprocal transfer of nonmonetary assets are recognized because they have been earned or incurred by the entity at the date of transfer.
A is incorrect. ASC Topic 958 states that both gains and losses on nonmonetary, nonreciprocal transfers (donations) are to be recorded. The gain or loss is calculated as the difference between the fair value of the nonmonetary asset transferred and its recorded amount at the date of donation. Gains or losses related to the nonreciprocal transfer of nonmonetary assets are recognized because they have been earned or incurred by the entity at the date of transfer.
A is incorrect. ASC Topic 958 states that both gains and losses on nonmonetary, nonreciprocal transfers (donations) are to be recorded. The gain or loss is calculated as the difference between the fair value of the nonmonetary asset transferred and its recorded amount at the date of donation. Gains or losses related to the nonreciprocal transfer of nonmonetary assets are recognized because they have been earned or incurred by the entity at the date of transfer.
