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 OP250,000 OP241,000 OP191,000 P200,000
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 OP250,000 OP241,000 OP191,000 P200,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 1MC
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