When Stock Traded on an Active Exchange Is Issued for a Machine

question 13

Multiple Choice

When stock traded on an active exchange is issued for a machine:

• A) No entry is recorded until restrictions are lifted.
• B) An asset is recorded for the fair value of the stock.
• C) An asset is recorded for the appraised value of the machine.
• D) Paid-in capital is increased by the appraised value of the machine.

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Definitions:

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