Final answer:
Assets acquired by a corporation in exchange for stock are recorded at their current market value, correctly reflecting their value at the time of the transaction.
Step-by-step explanation:
When a corporation issues stock in exchange for assets other than cash, such as property or equipment, the assets received are recorded at their current market value. This valuation ensures that the company's financial records reflect the fair and true value of the assets at the time of the transaction, rather than the cost to purchase them in the past or the stated value on the books.
For example, if a company issues stock for a piece of machinery, and the machinery's current market value is estimated at $50,000, then the machinery will be recorded on the company's balance sheet at $50,000, and the corporation's equity will increase by the same amount due to the issuance of stock.