On May 5, 2010, Mulder Corp.exchanged 5,000 of its common shares for a patent owned by Drucker Co.At May 5, 2010, Mulder's common shares were quoted at $28 per share, and the patent had a carrying value of $130,000 on Drucker's books.Mulder should record the patent at
A)$130,000.
B)$110,000.
C)$140,000.
D)$120,000.

Question

Quizplus · Accepted Answer

Mulder should record the patent at the fair value of the shares exchanged, which is 5,000 shares x $28 per share = $140,000.