CAIRNE issued 30,000 shares of P100 statedvalue in exchange for land and factorybuilding with total fair value of P9 millionpesos. The value of land is twice as much thevalue of the building. What would be theentry of CAIRNE to record the transaction?Group of answer choicesA. LandBuilding6,000,0003,000,000Share Capital6,000,0003,000,000Share CapitalShare Premium9,000,000B. LandBuilding3,000,0006,000,000C. LandBuilding2,000,0001,000,000Share Capital2,000,0001,000,000Share Capital3,000,000D. LandBuilding3,000,000

It is given that total fair value of land and factory building is P9 million but buildings &…

CAIRNE issued 30,000 shares of P100 stated value in exchange for land and factory building with total fair value of P9 milion pesos. The value of land is twice as much the value of the building. What would be the entry of CAIRNE to record the transaction?

CAIRNE issued 30,000 shares of P100 stated value in exchange for land and factory building with total fair value of P9 milion pesos. The value of land is twice as much the value of the building. What would be the entry of CAIRNE to record the transaction?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 32P

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

CAIRNE issued 30,000 shares of P100 stated
value in exchange for land and factory
building with total fair value of P9 million
pesos. The value of land is twice as much the
value of the building. What would be the
entry of CAIRNE to record the transaction?
Group of answer choices
A. Land
Building
6,000,000
3,000,000
Share Capital
6,000,000
3,000,000
Share Capital
Share Premium
9,000,000
B. Land
Building
3,000,000
6,000,000
C. Land
Building
2,000,000
1,000,000
Share Capital
2,000,000
1,000,000
Share Capital
3,000,000
D. Land
Building
3,000,000

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