A Company Is Exchanging Its Common Stock for Land in a Nonmonetary

question 68

Multiple Choice

A company is exchanging its common stock for land in a nonmonetary exchange. This transaction should be valued based upon the

• A) fair value of the stock.
• B) book value of the land.
• C) fair value of the stock issued and the land received.
• D) fair value of the stock issued and the land received, whichever is more reliable.

---

Definitions:

Plaque Formation

The accumulation of substances on the inner lining of arterial walls, which can lead to arterial blockages and cardiovascular diseases.

Whole Grain Breads

Breads made from flour that contains the entire grain kernel, offering higher nutritional value including fiber, vitamins, and minerals.

Acquired Immunodeficiency Syndrome

A disease caused by the HIV virus that weakens the immune system, making it difficult for the body to fight infections and diseases.

Gingivitis

Inflammation of the gums characterized by redness, swelling, and bleeding, often caused by plaque buildup on the teeth.