3. Assuming all of the following are reliably determinable, the best basis to measure the non-cash asset received by a corporation in exchange for shares issued is the

a. Par value of the shares issued

b. Fair value of the shares issued

c. Carrying value in the books of the shareholder of the non-cash asset contributed

d. Fair value of the non-cash asset received

4. Transaction costs incurred by the corporation relating to issue of shares may not be

a. Charged against the related share premium

b. Charged to an expense account

c. Written off directly against share capital

d. Taken to profit or loss

5. When subscription is made at a price in excess of the par value of the share capital,

a. The share premium is recognized at the date of the subscription.

b. The share premium is recognized at the date of the subscription price only if fully collected.

c. No entry is made, except if a down payment is collected.

d. Share capital account is credited equal to the subscription price.

6. Which of the following transactions is recorded in the same manner under both the journal entry method and memorandum entry method?

A. Receipt of authorization to issue share capital

B. Receipt of share capital subscription

C. Issue of share capital previously subscribed

D. Sale for cash of share capital.