Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited. To find: at which value the building should recorded.

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Chapter 13, Problem 4QC

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

To find: at which value the building should recorded.

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