When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by market price of the stock.
Common stock is a type of stock, issued to those who have majority of shares in a company.
The reason is that the total cost of the plant is divided by the stated value of the stock, and then the resultant number of common stock.
Hence, when a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by stated market price of the stock.
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