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 sells for $19 per share. At what amount should the building be recorded by Hurd Company? a. $40,000 b. $150,000 c. $190,000 d. $154,000

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
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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 sells for $19 per
share. At what amount should the building be recorded by Hurd
Company?
a. $40,000
b. $150,000
c. $190,000
d. $154,000
Transcribed Image Text: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 sells for $19 per share. At what amount should the building be recorded by Hurd Company? a. $40,000 b. $150,000 c. $190,000 d. $154,000
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