When Common Stock Is Issued for Services or Non-Cash Assets

question 167

Multiple Choice

When common stock is issued for services or non-cash assets cost should be

• A) only the fair value of the consideration given up.
• B) only the fair value of the consideration received.
• C) the book value of the common stock issued.
• D) either the fair value of the consideration given up or the consideration received whichever is more clearly evident.

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Definitions:

Pleasure Principle

A psychoanalytic concept that suggests the driving force of behavior is the desire to maximize pleasure and avoid pain, guiding the id aspect of personality.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Schema

A cognitive framework or concept that organizes and interprets information in the brain, influencing perception and understanding.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, the superego, and reality. It's involved in our sense of personal identity and our conscious decision-making.