Part of stockholders' equity representing the fair market value of an asset at the time it was
received as a gift. For example, a corporation may be given a large tract of land from a
community if the corporation constructs a manufacturing facility in the community.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.