On December 1, Young Corporation exchanged 5,000 shares of its P25 par value common stock held in treasury for a parcel of land to be held for a future plant site. The treasury shares were acquired by Young at a cost of P40 per share, and on the exchange date the common shares of Young had a fair market value of P50 per share. Young received P9,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at P250,000 P200,000 P191,000 P241,000

On December 1, Young Corporation exchanged 5,000 shares of its P25 par value common stock held in treasury for a parcel of land to be held for a future plant site. The treasury shares were acquired by Young at a cost of P40 per share, and on the exchange date the common shares of Young had a fair market value of P50 per share. Young received P9,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at P250,000 P200,000 P191,000 P241,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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