If stock is issued for an asset other than cash,the asset should be recorded on the books of the corporation at:

Question

Quizplus · Accepted Answer

When stock is issued for an asset other than cash, the asset should be recorded on the books of the corporation at its fair market value. This is because the asset is being exchanged directly for ownership in the corporation, and the value of that ownership should reflect the current value of the asset being contributed. Book value, par value, and fair value of the stock itself are not relevant in determining the value of the asset being contributed.

If Stock Is Issued for an Asset Other Than Cash,the