If a plant asset is acquired by the issuance of a public company's common shares, the cost of the plant asset should be measured by the
A) market value of the shares
B) book value of the shares
C) stated value of the shares
D) the par value of the shares

Question

Quizplus · Accepted Answer

The cost of the plant asset acquired through the issuance of a public company's common shares should be measured by the market value of those shares. This approach reflects the fair value of the asset acquired, providing a more accurate representation of the transaction's economic reality.

If a Plant Asset Is Acquired by the Issuance of a Public