Black Bulls Corp. Issued 10,000 shares of its P10 par value shares for a building. The building has a fair value of P500,000 and a book value of P400,000. Black Bulls’ ordinary share is currently selling for P45 per share. Black Bulls Corporation should record the building at a) P100,000 b) P450,000 c) P500,000 d) P400,000
Black Bulls Corp. Issued 10,000 shares of its P10 par value shares for a building. The building has a fair value of P500,000 and a book value of P400,000. Black Bulls’ ordinary share is currently selling for P45 per share. Black Bulls Corporation should record the building at a) P100,000 b) P450,000 c) P500,000 d) P400,000
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 28E
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Black Bulls Corp. Issued 10,000 shares of its P10 par value shares for a building. The building has a fair value of P500,000 and a book value of P400,000. Black Bulls’ ordinary share is currently selling for P45 per share. Black Bulls Corporation should record the building at
a) P100,000 b) P450,000 c) P500,000 d) P400,000
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