If a corporation receives assets other than cash in exchange for stock,it records the assets received at their market value as of the date of the transaction.

Name: If a corporation receives assets other than cash in exchange for stock,it records the assets received at their market value as of the date of the transaction.
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Question

Quizplus · Accepted Answer

This is in accordance with the Generally Accepted Accounting Principles (GAAP) which require that non-cash assets received in exchange for stock be recorded at fair market value.

If a Corporation Receives Assets Other Than Cash in Exchange