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A company purchased a building by issuing 2,000 shares of \$3 par value common stock. Since the company is new, there is no established market price for its stock.
How would the company figure out the dollar amount to record the transaction?
Use the par value of the stock as the issue price of the stock.
Use the fair value of the building as the proceeds received for the stock.
The transaction would be delayed until the stock started to trade and a price was established.
Use the average stock price of similar sized firms.