Ask Question
BusinessBusiness
16 April, 22:44

When stock is issued for assets other than cash, the transaction is always recorded at the market value of the stock issued?

+2
Answers (1)
  1. 16 April, 22:51
    0
    The answer is true. The measurement objective is that the transaction should be measured and recorded at fair market value. This might be the fair market value of the issued shares or of the non-cash asset received in the exchange. The value that should be used is the one that is more clearly evident. This is consistent with the general practice of recording any non-cash transaction at market value. When the stock is actively traded on an organized stock exchange, the market value of the stock might be the best evidence.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When stock is issued for assets other than cash, the transaction is always recorded at the market value of the stock issued? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which one of the following may be the least valuable source of advice when you're researching the market for your new business? A. Other business owners with similar businesses B. Local attorneys who specialize in business law C.
Answers (1)
What is the law of demand?
Answers (2)
The most important stage of creating effective business messages is planning. a. True b. False
Answers (1)
The following transactions took place for Parker's Grocery. a. Jan. 1 Loaned $47,000 to a cashier of the company and received back a one-year, 10 percent note. b. June 30 Accrued interest on the note. c. Dec. 31 Received interest on the note.
Answers (1)
The stock of Cachapa International has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Cachapa's stock?
Answers (1)
New Questions in Business
One of the advantages of personal selling over other types of marketing communications is: a. salespeople can customize their message for a specific buyer. b. it almost always costs less than other marketing communication alternatives. c.
Answers (1)
The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called
Answers (1)
Find the duration of a 7.6% coupon bond making semiannually coupon payments if it has three years until maturity and has a yield to maturity of 6.0%. What is the duration if the yield to maturity is 12.0%? Note: The face value of the bond is $100
Answers (1)
Vaughn Corporation acquires a coal mine at a cost of $460,000. Intangible development costs total $115,000.
Answers (1)
Sara wants to start her own business. She is not sure if she wants to be a sole proprietor or get a partner. She asks a financial adviser about the different ways in which she might finance her company.
Answers (1)
Home » Business » When stock is issued for assets other than cash, the transaction is always recorded at the market value of the stock issued?
Sign Up Forgot Password?