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Synergy Constructions LLC., invests in a piece of land & pays for it in the form of shares.

If3,000 shares of £20 par-value common stock are issued in exchange for land with a fair market value of £90,000, the land and common stock (along with any additional paid-in capital) should be recorded at:

 

a. £0

b. £3,000

c. £60,000

d. £90,000

 

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Question ajoutée par IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd
Date de publication: 2015/09/19
Mohamed Ghazi CMA
par Mohamed Ghazi CMA , Finance and Budget Manager , Ernst & Young

D-90000  the fair market value               

Asif Hussain
par Asif Hussain , Accountant , Al Howail Company

option D will b ethe correct ans

Charles Phillip Anthony Brioso
par Charles Phillip Anthony Brioso , Risk Officer , Saudi Investment Bank

Both must be recorded at the market value of lanf which is, with difference of shares par value accounted to additional paid in capital/share premium.

ochan elias benard
par ochan elias benard , accounts assistant , euroflex limited

The answer is,, because trading securities are to be recorded at market price, but the fluctuations in the value of the assets is recorded in the income statement at fair value or mark to market.

Anuj Gupta
par Anuj Gupta , Credit Controller , Atlas Printing Press LLC

The Answer is C60000 pounds since the actual cost incurred is60000 pounds, further it can be said that the company cracked a good deal on the basis of negotiation

Shinemon Cyriac
par Shinemon Cyriac , Senior Accountant , KFB Group

Answer is,/- . Fair value is irrelevant. The amount paid is,/- for land.

Shares60,000 and land should be FV

abdulaziz khorshid
par abdulaziz khorshid , CREDIT MANAGER , RASHED ABDUL RAHMAN ALRASHED

0 as it is the actual cost >>>>>

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