The par value of stock issued for noncash assets is never a factor in determining the cost of the assets received.

Name: The par value of stock issued for noncash assets is never a factor in determining the cost of the assets received.
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Question

Quizplus · Accepted Answer

The cost of noncash assets received is determined by the fair market value of the stock issued or the fair market value of the assets received, whichever is more clearly determinable, not by the par value of the stock.

The Par Value of Stock Issued for Noncash Assets Is