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

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 the current market value of the asset. This is because the market value of the asset represents the value that the asset currently has in the market, and this value is a more accurate representation of the value of the asset than its book value or par value.

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