If Shares Are Issued for a Non-Cash Asset, the Asset

question 237

Multiple Choice

If shares are issued for a non-cash asset, the asset should be recorded on the books of the corporation at

• A) fair value.
• B) cost.
• C) zero.
• D) a nominal amount.

---

Definitions:

Henry Steinway

The founder of the Steinway & Sons piano company, known for producing high-quality grand and upright pianos.

Patenting Innovations

The act of securing legal protection for new inventions or processes to prevent unauthorized use.

Tsunami

A succession of significant waves in the ocean, often the result of submarine earthquakes, volcanic explosions, or terrain collapses.

Sumatra

A large Indonesian island in Southeast Asia, known for its diverse ecosystems, including mountains, rainforests, and vast wildlife.