If shares are issued for a non-cash asset, the asset should be recorded on the books of the corporation at

Question

Quizplus · Accepted Answer

When shares are issued for a non-cash asset, the asset should be recorded at fair value rather than at cost or zero. Fair value represents the amount that the asset could be sold for in an open market transaction, and it provides a more accurate reflection of the value of the asset at the time the shares are issued. This treatment ensures that the financial statements reflect the value of the company's assets and the underlying economics of the transaction.

If Shares Are Issued for a Non-Cash Asset, the Asset