Ever bright Systems Inc. acquired land in exchange for 12,000 shares of $5 par value common stock. The land is assessed at $400,000 for tax purposes. The stock is trading at $30 per share on the exchange. At what amount should the land be recorded in the accounting records?
Ever bright Systems Inc. acquired land in exchange for 12,000 shares of $5 par value common stock. The land is assessed at $400,000 for tax purposes. The stock is trading at $30 per share on the exchange. At what amount should the land be recorded in the accounting records?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 32P
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Transcribed Image Text:Ever bright Systems Inc. acquired land in exchange for 12,000 shares of $5
par value common stock. The land is assessed at $400,000 for tax purposes.
The stock is trading at $30 per share on the exchange.
At what amount should the land be recorded in the accounting records?
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