If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at A. a nominal amount. B. cost. C. fair value. D. zero.

Question

Esparza

Business

8 October, 21:46

If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at A. a nominal amount. B. cost. C. fair value. D. zero.

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Answers (1)

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Cornelius · Answer 1

correct answer is option C

Explanation:

correct answer is option C

fair value is the price which we will receive to sell an asset or paid to transfer the liability. It is the price of asset at which it is exchange between knowledgeable parties by there own will and not under any pressure.

when the assets is being exchanged at the market then this type of exchange is known as market value.

hence, the most suitable answer is option C FAIR VALUE