A company acquires land by issuing 11,100 shares of its $20 par value common stock which is currently trading at$30 per share, and the appraised value of the land is $261,000. Which of the following statements correctlydescribes the recording of the land?Multiple CholceRecord the land at Its appraised value of $261,000 and recognize a galn of $-72.000 sınce theIssued stock is currently worth $333,000.Record the land at the par value of the stock glven up, $222,000.Record theNnd at the average of Its appralsed value of $261,000 and the $333,000 value ofthe stock Issủed, thereby recognizing a $-72,000 gain.Record the land at the $333,000 value of the consideration glven up.

Consideration given up = 11,100 shares x $30 = $333,000

A company acquires land by issuing 11,100 shares of its $20 par value common stock which is currently trading at $30 per share, and the appraised value of the land is $261,000. Which of the following statements correctly describes the recording of the land? Multiple Cholce

A company acquires land by issuing 11,100 shares of its $20 par value common stock which is currently trading at $30 per share, and the appraised value of the land is $261,000. Which of the following statements correctly describes the recording of the land? Multiple Cholce

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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