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A Company Issues Its Capital Stock to Acquire a Building

Question 104

Multiple Choice

A company issues its capital stock to acquire a building.Both parties in the transaction should record the transaction using the:


A) fair value of the capital stock
B) fair value of the building
C) book value of the building
D) fair value of the capital stock or the fair value of the building,whichever is easier to determine objectively
E) book value of the capital stock

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