If the donor is a shareholder, a revenue or gain is recognized at an amount equal to the value of the donated asset.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter22: S Corporations
Section: Chapter Questions
Problem 9BCRQ
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-If the donor is a shareholder, a revenue or gain is recognized at an amount equal to the value of the donated asset.
- If the donor is a shareholder, the donation is recorded by crediting an appropriately titled additional paid in capital account.
- PPE received as donation is recorded at its fair value less cost to sell at the time of donation.
 
True or False
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