When common stock is issued in exchange for land, the land should be recorded in the accounts at the par amount of the stock issued.

Question

Quizplus · Accepted Answer

When common stock is issued in exchange for land, the land should be recorded at its current fair market value, which is the value of the asset being given up (the land) rather than the par value of the stock being issued. This ensures that the company properly reflects the value of the transaction in its accounting records.

When Common Stock Is Issued in Exchange for Land, the Land