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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The fair value of the stock represents the actual value of the asset received as it reflects the market price of the stock at the time of issuance. This value is considered more reliable and relevant than the par or stated value of the stock, which may not represent the true economic value of the asset acquired. The book value of the stock is also not an appropriate measure of the cost of the plant asset as it reflects the historical cost of the stock, which may not be reflective of the current market value.

When a Plant Asset Is Acquired by Issuance of Common