Question - Butch Tech provides laptop-related maintenance services to Turner. In exchange, Butch Tech received 140 shares of Turner no-par common stock. Determine the transaction price in the contract for the following scenarios: (a) 140 shares of Turner's stock is traded on an active market for $58,000. The standalone value of the maintenance services is $61,000. (b) Turner is privately held, making it difficult to estimate the fair value of the shares given in exchange for the maintenance services.
Determine the transaction price for scenario (a).
Determine the transaction price for scenario (b).