The Cost of a Noncash Asset Acquired in Exchange for Ordinary

question 22

True/False

The cost of a noncash asset acquired in exchange for ordinary shares should be either the fair value of the consideration given up, or the fair value of the consideration received, whichever is more clearly determinable.

---

Definitions:

Earnings Per Share

A financial metric calculated by dividing the net earnings available to common shareholders by the average outstanding shares.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership stake of shareholders.

Cash Dividends

Cash Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits.

Earnings Per Share

A financial metric that measures the portion of a company's profit allocated to each outstanding share of common stock, indicating a company's profitability.