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Find non-cash asset received by a corporation in exchange

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Reference no: EM132737817

Problem 1: A deficit in capital account is reduced to zero through the partnership's loan payable is known as:

A) Right of offset

B) Absorption of capital deficiency

C) Liquidation

D) Additional investment

Problem 2: Assuming all of the following are reliably determinable, the best basis to measure the non-cash asset received by a corporation in exchange for shares issued is the:

A) Carrying value in the books of the shareholder of the non-cash asset contributed

B) Fair value of the non-cash asset received

C) Par value of the shares issued

D) Market value of the shares issued

Reference no: EM132737817

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