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2) Tilt Company acquired land from Display Company which will be used as a plant site in exchange for 20,000 newly issued shares of Tilt's ordinary shares. At the date of acquisition, Tilt's ordinary shares had a par value of P20 per share and a fair value of P30 per share. The fair value of the land was P500,000 when Cooper acquired this 2 years ago. How much is the initial cost of the newly acquired land? A 400,000 B. 500,000 C. 600,000 D. 200,000

2) Tilt Company acquired land from Display Company which will be used as a plant site in exchange for 20,000 newly issued shares of Tilt's ordinary shares. At the date of acquisition, Tilt's ordinary shares had a par value of P20 per share and a fair value of P30 per share. The fair value of the land was P500,000 when Cooper acquired this 2 years ago. How much is the initial cost of the newly acquired land? A 400,000 B. 500,000 C. 600,000 D. 200,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2) Tilt Company acquired land from Display Company which will be used as a plant site in exchange for 20,000 newly issued shares of Tilt's ordinary shares. At the date of acquisition, Tilt's ordinary shares had a par value of P20 per share and a fair value of P30 per share. The fair value of the land was P500,000 when Cooper acquired this 2 years ago. How much is the initial cost of the newly acquired land? A 400,000 B. 500,000 C. 600,000 D. 200,000
Transcribed Image Text:2) Tilt Company acquired land from Display Company which will be used as a plant site in exchange for 20,000 newly issued shares of Tilt's ordinary shares. At the date of acquisition, Tilt's ordinary shares had a par value of P20 per share and a fair value of P30 per share. The fair value of the land was P500,000 when Cooper acquired this 2 years ago. How much is the initial cost of the newly acquired land? A 400,000 B. 500,000 C. 600,000 D. 200,000
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