Johnik: Mr. Zack references "ASC 845 Nonmonetary Transactions" in his book. This is where the relevant accounting rules are stated.

As he says in his book (I am not an accountant), the relevant section has to do with barter credits. The "media credits" are the "barter credits" and they were exchanged for JBI stock.  Because the value of the stock on the date of the exchange ($1.00/share) was easier to assess than the value of the media credits, that is the value that should have been used.

http://www.oriontradingworldwide.com/portals/...%20845.pdf

http://books.google.ca/books?id=bCcNmJ0KK00C&...mp;f=false