Assets Received in Exchange for the Issuance of Stock Should

question 12

Multiple Choice

Assets received in exchange for the issuance of stock should be recorded at:

• A) historical cost
• B) historical cost less accumulated amortization taken to date
• C) fair market value as determined by a good-faith estimate from independent appraisers
• D) book value prior to the issuance

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Definitions:

Specific Technology

A particular or specialized technology designed for a specific purpose or task.

Microcomputers

The smallest and least expensive category of general-purpose computers, also called micros, personal computers, or PCs.

Secondary Storage

Technology that can store very large amounts of data for extended periods.

Data

Information collected, stored, and used for analysis or processing; can be quantitative or qualitative.