Consider two types of assets held by IBM: land purchased in 1912 when the company was known as the Computing-Tabulating-Recording Company, and machinery purchased and installed at its manufacturing plant in 2012. How close do you suppose the December 31, 2013, balance sheet value of each asset is to the fair value of the asset at that date, assuming the company uses U.S. GAAP? What if IBM uses IFRS?
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