If the total fair market value of assets is $8,000, what percentage of the acquisition cost does the printer's FMV of $1,000 represent?

Study for the AIPB Mastering Depreciation Test. Prepare with flashcards and multiple-choice questions, each with hints and explanations. Enhance your knowledge and boost confidence for the exam!

To determine what percentage of the total fair market value of assets the printer's fair market value (FMV) represents, you can use the formula:

[

\text{Percentage} = \left( \frac{\text{FMV of the asset}}{\text{Total FMV of assets}} \right) \times 100

]

In this scenario, the printer's FMV is $1,000, and the total fair market value of assets is $8,000. Plugging the values into the formula gives:

[

\text{Percentage} = \left( \frac{1,000}{8,000} \right) \times 100 = 12.5%

]

This calculation shows that the FMV of the printer represents 12.5% of the total acquisition cost of the assets. Understanding this percentage is crucial in contexts where asset valuation and depreciation are concerned, as it can affect financial reporting and asset allocation strategies. Thus, the correct answer is indeed 12.5%.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy