Capital Stock
FMV % Proceeds Asset Valuation
C/S #1 $8,000 80 $9,000 $7,200
C/S #2 2,000 20 9,000 1,800
- What if only class #1 of C/S has a FMV? Use the Incremental Method.
$9,000 cash - FMV C/S #1 $8,000 = $1,000 value C/S #2
- Neither value known then set by the board of directors.