Question

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. Should

the land be recorded at $20,000, $80,000, or $95,000? Explain​

Answer 1

Answer:

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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. Should the land be recorded at $20,000, $80,000, or $95,000?