What should the building be valued at? Reed Hiller, the accountant for Snyder Corporation, is trying to decide how to record the company’s most recent issuance of stock. Jack Chavez, a majority...

What should the building be valued at?

Reed Hiller, the accountant for Snyder Corporation, is trying to decide how to record the company’s most recent issuance of stock. Jack Chavez, a majority stockholder, has contributed a building in exchange for common stock. Jack believes that the building should be valued at $4 million, his evaluation of the building’s market value. Jack argues that by recording the asset at such a large amount, the business will look more prosperous to investors. Reed is concerned that Jack is overvaluing the asset. What should Reed do?