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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

FINANCIAL ACCOUNTING
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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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 OP200,000
Transcribed Image Text: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 OP200,000
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