From the Following,select the Most Appropriate Basis for the Valuation

question 58

Multiple Choice

From the following,select the most appropriate basis for the valuation of a new investment when properties or services are exchanged for stock.

• A) The par or stated value of the stock received
• B) The book value of the property or services exchanged
• C) The fair market value of the stock received
• D) Either the book value of the property or services exchange or the fair market value of the stock received,whichever is more clearly determinable

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Definitions:

Fixed Budgets

Financial plans that allocate a predetermined amount of resources for a specific period, not allowing for modifications based on actual income or expenses.

Policies and Procedures

Established guidelines and methods of operation that an organization sets to regulate its activities and achieve objectives efficiently and in compliance with legal standards.

Single-use Plans

Specific actions or strategies designed to address a particular problem, goal, or project, and not intended for repeated or continual use.

Budgets

Financial plans that allocate resources, project revenues and expenses, and guide spending and investment decisions over a specific period.