If stock is issued for a noncash asset the asset should be recorded on the books of the corporation at
A) fair value.
B) cost.
C) zero.
D) a nominal amount.

Question

Quizplus · Accepted Answer

When stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at fair value. This ensures that the stock is being issued for an accurate representation of the value of the noncash asset being contributed.

If Stock Is Issued for a Noncash Asset the Asset