Desert Company purchased land by exchanging 25,000 shares of the company's common stockthat had a $10 par value. The land was recently appraised for $250,000. Desert's stock is notactively traded on the NYSE but last year a shareholder sold a block of 250 shares at a selling priceof $20 per share.What is the original cost of the Land that will be recorded by Desert, Co., on their Balance Sheet?

The value of a piece of property is its land value, which includes the cost of any improvements done…

Answered: Desert Company purchased land by…

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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