When common stock is issued for services provided to the corporation,the corporation usually recognizes an expense for the fair market value of the services provided.

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Quizplus · Accepted Answer

This is because when services are provided in exchange for common stock, the fair market value of the services is treated as an expense on the corporation's income statement. This expense is offset by the value of the common stock that is issued, which is recorded in the corporation's equity accounts.

When Common Stock Is Issued for Services Provided to the Corporation,the