Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited. To find: at which value the building should recorded.

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Answer 1

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Chapter 13, Problem 4QC

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

To find: at which value the building should recorded.

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Answer 2

Question

Chapter 13, Problem 4QC

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

To find: at which value the building should recorded.

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Answer 3

Question

Chapter 13, Problem 4QC

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

To find: at which value the building should recorded.

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Answer 4

Question

Chapter 13, Problem 4QC

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

To find: at which value the building should recorded.

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Answer 5

Chapter 13, Problem 4QC

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

To find: at which value the building should recorded.

Answer 6

Chapter 13, Problem 4QC

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

To find: at which value the building should recorded.

Answer 7

Chapter 13, Problem 4QC

To determine

Valuation principle: As per the principle, the stock issued in exchange of assets other than cash, the company is required to record the transaction at the market value of the stock issued, or at the market value of the asset received whichever is clearly determinable. Thus, the particular asset acquired is debited, and the common stock and the paid in capital-common stock, if any are credited.

To find: at which value the building should recorded.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 13 - Prob. 1QC Ch. 13 - Prob. 2QC Ch. 13 - Suppose Value Home and Garden Imports issued...Ch. 13 - Prob. 4QC Ch. 13 - Prob. 5QC Ch. 13 - Assume that a company paid 6 per share to purchase...Ch. 13 - Prob. 7QC Ch. 13 - A small stock dividend a. decreases common stock....Ch. 13 - Jackson Health Foods has 8,000 shares of 2 par...Ch. 13 - Prob. 10QC

Solution Summary: The author explains that as per the valuation principle, the company should record the building at its market value. Option (a) refers to the value of a stock that is stated by the corporation's charter.

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Chapter 13 Solutions