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Which of the following statements concerning the exchange of an asset that has commercial substance does not follow general accepted accounting principles (GAAP)? The recognition

Which of the following statements concerning the exchange of an asset that has commercial substance does not follow general accepted accounting principles (GAAP)?

The recognition of any gain should be postponed through a lower depreciation basis for the new asset.

The new asset could be recorded based on the fair market value of the acquired asset.

The new asset could be recorded based on the fair market value of the asset given up.

Losses should always be recognized because the exchange culminates the earnings process.

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