Augmented Co. acquired a piece of land by issuing 20,000 shares with par value of P10 per share and quoted price of P90 per share. Case 1: The land has a fair value of P2,000,000. Provide the entry. Case 2: The fair value of the land cannot be determined reliably. Provide the entry.

Augmented Co. acquired a piece of land by issuing 20,000 shares with par value of P10 per share and quoted price of P90 per share. Case 1: The land has a fair value of P2,000,000. Provide the entry. Case 2: The fair value of the land cannot be determined reliably. Provide the entry.

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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Question

Augmented Co. acquired a piece of land by issuing 20,000 shares with par value of P10 per share and quoted price of P90 per share.

Case 1: The land has a fair value of P2,000,000. Provide the entry.

Case 2: The fair value of the land cannot be determined reliably. Provide the entry.

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