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2 June, 11:17

When stock is exchanged for noncash assets, A. debit the asset for prior book value and credit Common Stock for cash received. B. debit assets for market value and credit Common Stock for par value; if needed, credit Paid-In Capital in Excess of Par. C. debit assets for market value and credit Common Stock for market value. D. debit assets for par value and credit Common Stock for par value.

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  1. 2 June, 13:50
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    I think the correct answer is option C. When stock is exchanged for noncash assets, debit assets for market value and credit Common Stock for market value. Noncash assets include lands, equipment and buildings and for services we have consulting, accounting and legal counseling.
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