A company is exchanging its common stock for land in a nonmonetary exchange.This transaction should be valued based upon the
A)fair value of the stock
B)fair value of the land
C)fair value of the stock issued and the land received
D)fair value of the stock issued and the land received, whichever is more reliable

Question

Quizplus · Accepted Answer

The transaction should be valued based on the fair value of the stock issued and the land received, whichever is more reliably measurable. This approach ensures that the transaction is recorded at a fair and accurate value, reflecting the true cost or value of the assets exchanged.

A Company Is Exchanging Its Common Stock for Land in a Nonmonetary