MCQ Clifton Industries acquired a warehouse valued at$200,000 for property tax purposes in exchange for15,000 shares of its $5 par common stock. The stockis widely traded and sells for $16 per share. At whatamount should the warehouse be recorded by CliftonIndustries?a. $75,000b. $240,000c. $200,000d. $160,000

Explanation of Exchange of Property for Stock:When a company acquires an asset in exchange for its…

Answered: Clifton Industries acquired a warehouse…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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Kansas Company acquired a building valued at $158,000 for property tax purposes in exchange for 12,000 shares of its $3 par common stock. The stock is widely traded and selling for $19 per share. At what amount should the building be recorded by Kansas Company? a. $228,000 b. $36,000 OC. $158,000 Od. $191,500
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Steak Company acquired a building valued at $176,400 for property tax purposes in exchange for 10,400 shares of its $8 par common stock. The stock is widely traded and selling for $16 per share. At what amount should the building be recorded by Steak Company? O a. $176,400 O b. $166,400 O C. S83,200 O d. $239,200
Hurd Company acquired a building valued at $154,000 for property tax purposes in exchange for 10,000 shares of its $4 par common stock. The stock is widely traded and sold for $18 per share. At what amount should the building be recorded by Hurd Company? Select the correct answer. $140,000 $40,000 $154,000 $180,000
Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Kansas Company? Group of answer choices $60,000 $180,000 $210,000 $120,000
Financial Accounting
What amount should the building be recorded
This year, Sigma Inc. generated $662,250 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Initial Sale Price O$ 75,000 41,750 Acc. Basis Depr.* $ 149,600 $ 103,600 Marketable securities Production equipment Business realty: Land Building 82,880 237,000 270,000 247,250 210,500 81,000 *Through date of sale. Required: a. Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. b. Recompute taxable income assuming that Sigma sold the securities for $159,200 rather than $75,000.
Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman shares were selling for £34.50 per share. How much total revenues (all revenues) should be recognized from this investment during the year? Select one: Oa. $1900 Ob. $700 OC $1300 Od. $600
What amount should Figaro record as cost of the land? what amount should the machine acquired be recorded?
Marigold Corporation had the following activities in 2023: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. (a) Sold land for $196,000. Purchased an FV-NI investment in common shares for $14,200. Purchased inventory for $852,000 with cash. Received $73,000 cash from bank borrowings. Received interest for $11,500. Purchased equipment for $483,000 in exchange for common shares. Issued common shares for $370,000 cash. Recorded an unrealized gain of $3,750 on investments accounted for using the FV-NI model. Purchased investments in bonds, reported at amortized cost for $59,600. Declared and paid a dividend of $17,600 (charged to retained earnings). Sold investments in bonds reported at amortized cost, with a carrying amount of $406,800, for $416,200. Received dividends of $5,000 on FV-NI investments. Calculate the amount that Marigold should report as net cash provided (used) by investing activities on its statement of cash flows under IFRS. Under IFRS, assume Marigold adopts the policy of…

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