Assets received in exchange for the issuance of stock should be recorded at:

Question

Quizplus · Accepted Answer

Assets received in exchange for the issuance of stock should be recorded at fair market value as determined by a good-faith estimate from independent appraisers. This approach ensures that the transaction is recorded at a value that represents the most accurate estimate of the value of the assets at the time of the transaction. Historical cost and book value prior to the issuance may not reflect the current value of the assets, while using accumulated amortization taken to date may not be appropriate for assets that have not yet been fully depreciated.

Assets Received in Exchange for the Issuance of Stock Should