Common stock having fair value


On June 30, 2001, Cole Inc., exchanged 3,000 shares of Stone Corp. $30 par value common stock for a patent owned by Gore Co.. The Stone stock was acquired in 1999 at a cost of $80,000. At the exchange date, Stone common stock had a fair value of $45 per share, and the patent had a net carrying value of $160,000 on Gore's books. Cole should record the patent at:

a) $80,000

b) $90,000

c) $135,000

d) $160,000

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Accounting Basics: Common stock having fair value
Reference No:- TGS041174

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