Justin Company purchased a plant facility consisting of land and buildingfrom Joshua Company in exchange for 200,000 shares of Justin's sharecapital. On the acquisition date, Justin's shares had a closing market priceof P65 on a stock exchange while its par value is P50. The plant facility was carried in Joshua's books at P3,000,000 for the land and P8,000,000 forthe building at the exchange date. Current assessed values for the landand building, respectively are P4,500,000 and 7,000,000. How muchshould the Land be recorded in the books?
Justin Company purchased a plant facility consisting of land and buildingfrom Joshua Company in exchange for 200,000 shares of Justin's sharecapital. On the acquisition date, Justin's shares had a closing market priceof P65 on a stock exchange while its par value is P50. The plant facility was carried in Joshua's books at P3,000,000 for the land and P8,000,000 forthe building at the exchange date. Current assessed values for the landand building, respectively are P4,500,000 and 7,000,000. How muchshould the Land be recorded in the books?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Justin Company purchased a plant facility consisting of land
and buildingfrom Joshua Company in exchange for 200,000
shares of Justin's sharecapital. On the acquisition date,
Justin's shares had a closing market priceof P65 on a stock
exchange while its par value is P50. The plant facility was
carried in Joshua's books at P3,000,000 for the land and
P8,000,000 forthe building at the exchange date. Current
assessed values for the landand building, respectively are
P4,500,000 and 7,000,000. How muchshould the Land be
recorded in the books?
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