When stock is issued for noncash assets or services,the dollar amount to be recorded for this exchange is determined by the
A)treasurer of the corporation.
B)par value of the stock.
C)market value of the stock or the market value of the consideration received,whichever is greater.
D)market value of the stock or the market value of the consideration received when the market value of the stock cannot be determined.

Question

Quizplus · Accepted Answer

The correct accounting treatment for issuing stock for noncash assets or services is to record the transaction at the market value of the stock or the market value of the consideration received, whichever is more clearly determinable. When the market value of the stock cannot be determined, the focus shifts to the market value of the noncash assets or services received.

When Stock Is Issued for Noncash Assets or Services,the Dollar