Expert answer:Self-Constructed Assets and Nonreciprocal Transfer
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ACC 304 Week 3 Discussions
Self-Constructed Assets and Nonreciprocal Transfers” Please respond to the following:
•Imagine you are the senior accountant in the Fixed Assets department at your organization, and
management is undecided as to whether it should construct its fixed assets or purchase such
assets from an outside source. You are responsible for preparing a report to management,
highlighting the advantages and disadvantages of self-constructed assets. Suggest to management
two (2) advantages of purchasing the assets from an outside organization, as opposed to
constructing the assets internally. Justify your response.
•Imagine that management is considering a nonreciprocal transfer of an old asset. Determine the
key arguments for and against the accounting treatment of a nonreciprocal transfer. Select a
position for or against the accounting treatment, and explain the method that reflects the best
accounting practice.
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