share received from the new company are recorded at___
a) face value
b) average price
c) market value
d) none of this
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The correct answer is option (c) Market value.
- Shares is the part of Company's capital, it is a unit of ownership in a corporation which represents an equal portion of a company's capital.
- The shares received from the new company are recorded at Market value as the number of issued shares is recorded on a company's balance sheet as capital stock, or owners' equity.
- Shares outstanding are listed on the company's quarterly filings with the Securities and Exchange Commission (SEC)
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