Merrit Company acquired a building valued at $190,000 for property tax purposes in exchange for 12,000 shares of $5 par common stock. The stock is selling for $15 per share. At what amount should the building be recorded?
Merrit Company acquired a building valued at $190,000 for property tax purposes in exchange for 12,000 shares of $5 par common stock. The stock is selling for $15 per share. At what amount should the building be recorded?
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
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Question
General Accounting
Transcribed Image Text:Merrit Company acquired a building
valued at $190,000 for property tax
purposes in exchange for 12,000
shares of $5 par common stock. The
stock is selling for $15 per share. At
what amount should the building be
recorded?
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