Question

A company should immediately recognize: any gain when it constructs a piece of equipment at a cost savings. any gain when it makes a bargain purchase. any loss when it receives any asset lower than its book value. any loss when it ignorantly pays too much for an asset originally.

Answer 1

A company should immediately recognize ANY LOSS WHEN IT IGNORANTLY PAYS TOO MUCH FOR AN ASSET ORIGINALLY. Acquisition of company's assets has to be planned carefully to ensure that only needed equipment are acquired at the right cost or minimum cost possible. When too much is paid for any asset it must immediately be recognized as a loss.