Review given problems as per given requirements

Assignment Help Accounting Basics

Reference no: EM131880985

Question: 1. Carey Company is a publicly held corporation whose $10 par value stock is currently trading at $20 per share. The company issued 3,000 shares of stock to acquire land recently listed for sale at $45,000. Carey Company will record the Land at:

$60,000

$45,000

$30,000

Not enough information is given to determine the cost of the land.

2. SciWorks Corporation exchanges a piece of land for 600 shares of Fighter Corporation's $30 par common stock. The stock is not actively traded but had a fair value 6 months ago of $45 per share. The land had cost SciWorks Corporation $10,000 5 years ago and has a current fair value of $29,000. Fighter Co. should record the Land at:

$10,000

$18,000

$27,000

$29,000

3. PureTide Co. purchased land by issuing 80,000 shares of $4.00 par common stock in exchange for the land. The land was listed for sale at $500,000. The seller had purchased the land for $425,000 two years ago. The common stock was selling for $6.00 per share the day before the purchase of the land. HighTide should record the land at:

$320,000

$425,000

$480,000

$500,000

4. Shelby Incorporated decided to exchange 10,000 shares of $2.00 par common stock in exchange for legal services. The shares had a fair market value of $5 per share. The journal entry to record this event would include a:

Credit of $50,000 to the Common Stock account.

Credit of $50,000 to the cash account.

Debit to Legal Expenses for $30,000.

Debit to Legal Expenses for $50,000.

Reference no: EM131880985

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