On November 1, 2016, the Cranberry Construction Company declared a property dividend payable in the form of bonds held for long-term investment purposes. The bonds will be distributed to the common stockholders on December 15, 2016. The bonds to be distributed to the common stockholders originally cost Cranberry $210,000. Fair values of the bonds on various dates are as follows: December 31, 2015 $220,000 November 1, 2016 235,000 December 15, 2016 225,000 Which one of the following amounts should be used to record the appropriate credit to Property Dividends Payable? $230,000 $210,000 $235,000 $220,000

On November 1, 2016, the Cranberry Construction Company declared a property dividend payable in the form of bonds held for long-term investment purposes. The bonds will be distributed to the common stockholders on December 15, 2016. The bonds to be distributed to the common stockholders originally cost Cranberry $210,000. Fair values of the bonds on various dates are as follows: December 31, 2015 $220,000 November 1, 2016 235,000 December 15, 2016 225,000 Which one of the following amounts should be used to record the appropriate credit to Property Dividends Payable? $230,000 $210,000 $235,000 $220,000

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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