A company rejected an offer to purchase a land for $8,000,000 cash two year ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, $78 each based on several recent large transactions and normal weekly stock trading volume). How much is the cost of land acquired?

A company rejected an offer to purchase a land for $8,000,000 cash two year ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, $78 each based on several recent large transactions and normal weekly stock trading volume). How much is the cost of land acquired?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 44P

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Do not Copy from bartleby and chegg also Travis Co. decided set up a corporation issuing 5000 shares of 20 par ordinary stocks trading at 25 in the stock market in exchange for an equipment with a fair value of 150,000. Similarly, Travis Co. has a similar equipment which it bought for 160,000. The equipment is depreciated over 5 years using the straight-line method and it has no salvage value. How much is the depreciation on the first year? *
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