A corporation acquired a copyright by issuing 1, 000 shares of $10 par common stock.At the time of the exchange, the stock was selling for $40 per share.The copyright had a carrying value of $8, 000 to the author.The purchasing corporation should assign to the copyright a value of
A)$ 8, 000
B)$10, 000
C)$32, 000
D)$40, 000

Question

Quizplus · Accepted Answer

The copyright should be assigned a value of $40,000, which is the fair market value of the stock issued in exchange for the copyright.

A Corporation Acquired a Copyright by Issuing 1, 000 Shares