When Stock Is Issued for Noncash Assets or Services,the Dollar

question 176

Multiple Choice

When stock is issued for noncash assets or services,the dollar amount to be recorded for this exchange is determined by the

• A)treasurer of the corporation.
• B)par value of the stock.
• C)market value of the stock or the market value of the consideration received,whichever is greater.
• D)market value of the stock or the market value of the consideration received when the market value of the stock cannot be determined.

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Definitions:

Investment Account

A financial account held at a brokerage or financial institution that contains securities, cash, and other holdings for investment purposes.

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and entitling holders to a share of the company's profits via dividends.

Dividend

A share of profits distributed by a company to its shareholders, typically in the form of cash or additional stock.

Net Assets

The difference between an entity's total assets and total liabilities, representing the owners' equity in a company.