4. A state law requires the removal of asbestos when a building is demolished or significantly renovated. If a company acquires a building but plans to resell the building within the next 5 years, does it need to record an asset retirement obligation? Why or why not?

5. When using cost approach valuation, what type of cost is used as the fair value of assets? Provide an example where historical cost is different from replacement cost.

6. Provide an example where a transaction price might not represent the fair value of an asset or liability at initial recognition.