If noncash consideration such as stock of a publicly-traded company is given in a revenue contract, then the value to be used for the transaction price should be ________.
A) fair value of stock
B) book value of stock
C) historical cost of stock
D) net present value of revenue

Question

Quizplus · Accepted Answer

The fair value of the stock is used to determine the transaction price when noncash consideration is involved in a revenue contract, as it reflects the current market value.

If Noncash Consideration Such as Stock of a Publicly-Traded Company