If stock is issued for an asset other than cash, the asset should be recorded on the books of the corporation at:
A) fair market value.
B) cost.
C) par value of the stock.
D) zero.

Question

Quizplus · Accepted Answer

When stock is issued for an asset other than cash, the asset should be recorded at a fair market value on the books of the corporation. This is because the asset is being exchanged for equity in the company, and the fair market value represents the value of what is being given up in exchange for the equity.

If Stock Is Issued for an Asset Other Than Cash