When a plant asset is acquired by the issuance of common stock and the fair value of the plant asset isnot clearly determinable, the cost of the plant asset is properly measured by theOstated value of the stock.O market price of the stock.O book value of the stock.O par value of the stock.

Plant assets are those assets which are being acquired by the business for longer period of time.…

Answered: When a plant asset is acquired by the…

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 28GI

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When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the: par value of the stock stated value of the stock book value of the stock market value of the stock
Direct cost incurred to sell stock such as underwriting cost should be accounted for as?: 1. a reduction of additional paid-in captial 2. an expense of the period in which the stock is issued. 3. an intangible asset instructions: which of the above is correct a. 1 b. 2 c. 3 d. 1 or 3
Common Stock investments using the fair value method are: A. reported at fair value on the balance sheet. B. reported at cost on the balance sheet. C. reported with property, plant and equipment on the balance sheet. D. not reported on the balance sheet.
choose the correct answer: Equity security acquired for trading should be measured at reporting date a. cost, being the purchase price b. cost, being the purchase price plus transaction costs c. fair value, with change in FV taken through profit or loss. d. fair value, with change in FV taken through other comprehensive income.
The expected return on a stock is called the __ from the investor's perspective, and the __ from the company's perspective. A. required return; cost of equity B. required return; cost of capital C. excess return; cost of equity D. excess return; cost of capital
Cost of Capital' concept and its importance in the valuation of common stocks. How is the concept utilized in practice? Are there any deficiencies or inconsistencies in current practice?
Choose the correct answer: Equity security acquired for non-trading and the shares are not enough to warrant significant influence should be measured at the end of the period a. cost, being the purchase price b. cost, being the purchase price plus transaction costs c. fair value, with change in FV taken through profit or loss. d. fair value, with change in FV taken through other comprehensive income
What is reflected in the additional paid-in capital account?Required to answer. Single choice. a. Whichever is higher of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired b. Whichever is lower of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired c. The difference between the market price and the par value when the stock was reacquired d. None of the above e. The difference between the market price and the par value when the stock was issued.
Which one does not decrease asset at the distribution date? Select the correct response O Stock Dividend O Cash Dividend O Property Dividend O Scrip Dividend < Previous
What is Asset allocation: A) choosing which securities to hold based on their valuation. B) deciding how much to allocate in different asset classes. C) determining beta of securities. D) investing only in "safe" securities. Please Provide Justification
Common stock is typically stated at_ Select one: a. sale value. O b. par value c. Fair market value. O d. Appraised value.
For external statutory purposes, stock is valued atA. marginal costB. absorption costC. next in first out, costD. prime cost

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When a plant asset is acquired by the issuance of common stock and the fair value of the plant asset is not clearly determinable, the cost of the plant asset is properly measured by the O stated value of the stock. O market price of the stock. O book value of the stock. O par value of the stock.