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
C
You might also like to view...
Which of the following criteria would not apply in determining if a lease is a capital lease if the beginning of the lease term falls within the last 25% of the total estimated economic life of the leased asset?
A) the lease is non-cancelable B) the lease contains a bargain purchase option C) the lease transfers ownership of the property to the lessee by the end of the lease term D) the lease term is equal to 75% or more of the estimated economic life of the leased property
Which of the following actions is NOT an example of a buying signal?
A. The prospect asks the salesperson, "Do you have Model 125CV in stock?" B. The prospect asks the salesperson, "Do you carry this style in other colors?" C. The prospect asks the salesperson, "Can you call next week?" D. The prospect asks his wife, "What do you think about the price?" E. The prospect asks the salesperson, "What are your service policies?"
All property can be classified into which of the following?
A) Personal and impersonal B) Personal and fixtures C) Real and illusory D) Real and personal E) Intellectual and personal
When a buyer breaches a contract, the risk of loss immediately shifts to the buyer.?
Indicate whether the statement is true or false