When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the

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When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the market value of the stock. This is because the market value of the stock reflects the fair value of the plant asset received in exchange. The par value or stated value of the stock may not reflect the fair value of the plant asset, and the book value of the stock is based on historical cost and does not reflect current market conditions.

When a Plant Asset Is Acquired by Issuance of Common