Mini Corp. acquires a patent from Maxi Co. in exchange for 2,500 shares of Mini Corp.'s €5 par value ordinary shares and €85,000 cash. When the patent was initially issued to Maxi Co., Mini Corp.'s shares were selling at €7.50 per share. When Mini Corp. acquired the patent, its shares were selling for €9 a share. Mini Corp. should record the patent at what amount?
Mini Corp. acquires a patent from Maxi Co. in exchange for 2,500 shares of Mini Corp.'s €5 par value ordinary shares and €85,000 cash. When the patent was initially issued to Maxi Co., Mini Corp.'s shares were selling at €7.50 per share. When Mini Corp. acquired the patent, its shares were selling for €9 a share. Mini Corp. should record the patent at what amount?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mini Corp. acquires a patent from Maxi Co. in exchange for 2,500 shares of Mini
Corp.'s €5 par value ordinary shares and €85,000 cash. When the patent was initially
issued to Maxi Co., Mini Corp.'s shares were selling at €7.50 per share. When Mini
Corp. acquired the patent, its shares were selling for €9 a share. Mini Corp. should
record the patent at what amount?
O A. €107,500
OB.
O C.
€103,750
€ 97,500
O D. € 85,000
4
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