If a Plant Asset Is Acquired by the Issuance of a Public

question 155

Multiple Choice

If a plant asset is acquired by the issuance of a public company's common shares, the cost of the plant asset should be measured by the

• A) market value of the shares
• B) book value of the shares
• C) stated value of the shares
• D) the par value of the shares

---

Definitions:

Utility Function

A formula used by economists to map the degree of happiness or satisfaction one derives from consuming quantities of goods and services.

Consumption

The action of using up goods and services to satisfy needs or desires.

Income

The financial gain received by an individual or entity, usually through employment, investments, or business operations.

Interest Rate

The percentage of principal charged by the lender for the use of its money.