what does it mean cost is either fair value of consideration up or the fair value of the consideration received?

please explain and give an example or two thanks!!

ok

L + +40,000 OS + E -5,000 Exp +4,000 OS +1,000 OS + E +50,000 OS +30,000 OS as as follows. Cash 40,000 Share Capital Ordinary (To record issuance of 5.000 no-par shares) 40.000 Issuing Ordinary Sh ces or Non-Cash Assets wawicys or consundillsor Corporatio may issue shares for servies (em non-ca_assets (land, buildings, and equipment). In such cases, what cost should be recognized the exchange transaction? To comply with the historical cost principle, in a non-cash transact cost is the cash equivalent price. Thus, cost is either the fair value of the consideration giv up or the fair value of the consideration received, whichever is more clearly determinable. To illustrate, assume that attorneys have helped Jordan Company incorporate. They h billed the company 5,000 for their services The to accept 4,000 shares of 1 pa ue ordin hares in new ... ticu vill. At the time of the exchange, market price for the shares. In this case, the fair value of the consideration received, 5,000, is more clearly evident. Accordingly, Jordan makes the following entry. stablished Organization Expense 5,000 Share Capital-Ordinary Share Premium-Ordinary 4,000 1,000 (To record issuance of 4,000 1 par value shares to attorneys) As explained previously, organon costs are expensed as incurred. In contrast, assume that Athletic Research AG is an existing publicly held corporation. Its 5 par value shares are actively traded at 8 per share. The company issues 10,000 shares to acquire land recently advertised for sale at 90,000. The most clearly evident value in this non-cash transaction is the market price of the consideration given, 80,000. The company records the transaction as follows. 80,000 Land 50,000 30.000 Share Capital-Ordinary Share Premium-Ordinary (To record issuance of 10,000 5 par value star andstrand or a factor in determin- statement of financ and liquidation pre DO IT! 2a Hefei Ltd. b for cash at of their bu 100 par assuming Soluti Ma