ACC 304 All Assignments ACC 304 All Assignments | Page 41

d. either the proportional method or the incremental method.
30. When a corporation issues its capital stock in payment for
services, the least appropriate basis for recording the transaction is the
a. market value of the services received.
b. par value of the shares issued.
c. market value of the shares issued.
d. Any of these provides an appropriate basis for recording the
transaction.
31. Direct costs incurred to sell stock such as underwriting costs
should be accounted for as
1. a reduction of additional paid-in capital.
2. an expense of the period in which the stock is issued.