A corporation may issue stock for assets other than cash, requiring the recording of the assets at fair market value.

Name: A corporation may issue stock for assets other than cash, requiring the recording of the assets at fair market value.
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Question

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A corporation can issue stock for assets such as property, equipment, or services, requiring the recording of the assets at their fair market value. This is known as a non-cash transaction.

A Corporation May Issue Stock for Assets Other Than Cash