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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Which one of the following amounts should be used to record the appropriate credit to Property Dividends Payable?
| 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
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