Incorporating existing business' fully depreciated assets

When incorporating an existing business (US sole proprietorship to S-Corp) and transferring assets + cash (consideration) in exchange for shares, how are assets handled that have been fully depreciated at the time of transfer?

My understanding is that the assets should be given a "Fair Value" and that should be represented on the stock ledger and in the first meeting minutes where it is indicated that shares were issued, however how is this recorded in the accounting system (specifically the assets), or is it?