If Stock Is Issued for a Noncash Asset, the Asset

question 195

Multiple Choice

If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at

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

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Definitions:

Schedule C

A tax form used by sole proprietors in the United States to report the income and expenses of their business, used to calculate net business profit or loss.

Primarily Rental

Describes a property used mainly for rental purposes, affecting its tax treatment and eligible deductions.

Primarily Personal

A classification often used in taxation to describe expenses or activities that are mainly for personal benefit and not business or trade related, affecting their deductibility.

Self-Employment Income

Self-Employment Income is money earned from carrying out business activities or providing services as an independent contractor, rather than as an employee.