Purchased land by issuing 150, 000 shares of its P30 par value common shares in exchange. The shares have a quoted price of P64 per share on the date of purchase of the land. Journal entry to record the transaction: What is the rule in solving the problem?
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Problem 7
Purchased land by issuing 150, 000 shares of its P30 par value common shares in exchange. The shares have a quoted price of P64 per share on the date of purchase of the land.
What is the rule in solving the problem?
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- Question 2:Land appraised at $80,000 is purchased by issuing 1,000 shares of $20 par value common stock. The market price of the shares at the time of the exchange, based on active trading in the securities market, is $95 per share. Shouldthe land be recorded at $20,000, $80,000, or $95,000? Explain.XYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 P900,000 b. c. P90,000 d. P0 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 B.P900,000 C.P90,000 d. P0 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land.* a.P810,000 b.P900,000 c.P90,000 d.POXYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 b. P900,000 c. P90,000 d. P0 2. Assuming the fair value of the land is not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a. P810,000 b. P900,000 c. P90,000 d. P0 3. Assuming both the fair value of the land and the shares are not determinable, what is the initial cost of land? Prepare the journal entry to record the acquisition of land. a.P810,000 b. P900,000 c.P90,000 d. PO
- Martin Corporation is planning to issue 3,000 shares of its own $10 par value common stock for two acres of land to be used as a building site. Instructions a. What general rule should be applied to determine the amount at which the land should be recorded? b. Under what circumstances should this transaction be recorded at the fair value of the land? c. Under what circumstances should this transaction be recorded at the fair value of the stock issued? d. Assume Martin intentionally records this transaction at an amount greater than the fair value of the land and the stock. Discuss this situation.22,000 shares reacquired by Sunland Corporation for $50 per share were exchanged for undeveloped land that has an appraise value of $1,630,000. At the time of the exchange, the common stock was trading at $57 per share on an organized exchange. (a) Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit CreditTwenty-five thousand shares reacquired by Elixir Corporation for $53 per share were exchanged for undeveloped land that has an appraised value of $1,700,000. At the time of the exchange, the common stock was trading at $62 per share on an organized exchange. Instructions a. Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method. b. Briefly identify the possible alternatives (including those that are totally unacceptable) for quantifying the cost of the land and briefly support your choice.
- 22,000 shares reacquired by Sunland Corporation for $50 per share were exchanged for undeveloped land that has an appraised value of $1,630,000. At the time of the exchange, the common stock was trading at $57 per share on an organized exchange. (a) Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit CreditPharaoh Company obtained land by issuing 1,720 shares of its $14 par value ordinary shares. The land was recently appraised at $85,000. The ordinary shares are actively traded at $44 per share. Prepare the journal entry to record the acquisition of the land. (Credit account titles are automatically indented when amount is entered Do not indent manuallyIf no entry is required, select "No Entry" for the account titles and enter for the amounts)(Issuance of Stock for Land) Martin Corporation is planning to issue 3,000 shares of its own $10 par value common stock for two acres of land to be used as a building site.Instructions(a) What general rule should be applied to determine the amount at which the land should be recorded?(b) Under what circumstances should this transaction be recorded at the fair value of the land?(c) Under what circumstances should this transaction be recorded at the fair value of the stock issued?(d) Assume Martin intentionally records this transaction at an amount greater than the fair value of the land and the stock.Discuss this situation.
- Tamarisk Company obtained land by issuing 2,950 shares of its $10 par value common stock. The land was recently appraised at $122,940. The common stock is actively traded at $40 per share. Prepare the journal entry to record the acquisition of the land. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Credit DebitA company was able to acquire a building, with a market value of RO 8 million, by issuing four million ordinary shares of RO1 each. When accounting for the acquisition of land and the issue of shares, how much should be credited to the Share Premium account? O a. RO 6 million O b. RO 4 million O c. RO 2 million O d. RO 10 millionA company acquires land by issuing 11,100 shares of its $20 par value common stock which is currently trading at $30 per share, and the appraised value of the land is $261,000. Which of the following statements correctly describes the recording of the land? Multiple Cholce Record the land at Its appraised value of $261,000 and recognize a galn of $-72.000 sınce the Issued stock is currently worth $333,000. Record the land at the par value of the stock glven up, $222,000. Record theNnd at the average of Its appralsed value of $261,000 and the $333,000 value of the stock Issủed, thereby recognizing a $-72,000 gain. Record the land at the $333,000 value of the consideration glven up.