I need assistance with this financial accounting problem using valid financial procedures. Orion Manufacturing acquired a warehouse valued at$210,000 for property tax purposes in exchange for10,500 shares of $5 par common stock. The stock iscurrently trading at $17 per share.At what amount should the warehouse be recorded?

Provided Data:Warehouse appraised (tax) value = $210,000Common stock issued = 10,500 sharesPar value…

Answered: Orion Manufacturing acquired a…

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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Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Kansas Company?a. $60,000b. $180,000c. $210,000d. $120,000
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Orion Manufacturing acquired a warehouse valued at $210,000 for property tax purposes in exchange for 10,500 shares of $5 par common stock. The stock is currently trading at $17 per share. At what amount should the warehouse be recorded?