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Homework answers / question archive / Companies should record stock issued for services or property other than cash at either the fair value of the stock issued or the fair value of the noncash consideration received, whichever is more clearly determinable
Companies should record stock issued for services or property other than cash at either the fair value of the stock issued or the fair value of the noncash consideration received, whichever is more clearly determinable.
Select one:
a. True.
b. False.
X borrowed $400,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31?
Select one:
a. $36,000.
b. $0.
c. $48,000.
d. $32,000.
1) When company issued common Stock Then consideration would be cash but if Consideration is not cash then equipment or other assets fair value would be use as consideration of Common stock.
So if fair value of stock or land, property is more determinable used as Common Stock consideration
So above statement is true
2) Interest expense = 400000*12%*9/12 = 36000
So answer is a) $36000
