Arlo Inc. acquired equipment in exchange for 8,000 shares of its $10 par value common stock. The stock is actively traded and currently sells for $18 per share. The equipment was appraised at $140,000 for insurance purposes. At what amount should Arlo Inc. record the equipment? a) $80,000 b) $144,000 c) $140,000 d) $130,000

Arlo Inc. acquired equipment in exchange for 8,000 shares of its $10 par value common stock. The stock is actively traded and currently sells for $18 per share. The equipment was appraised at $140,000 for insurance purposes. At what amount should Arlo Inc. record the equipment? a) $80,000 b) $144,000 c) $140,000 d) $130,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11P

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