1. 2) For how much will you debit land for if land's asking price is $510,000, land'sselling price is $490,000 and you issued 5,000 shares of common stocks inexchange for the land. stock selling price is $2/share and selling price is $100/sh.

When land is exchange for stock, the land is valued at the best established price. The best…

Answered: For how much will you debit land for if…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 5P

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Land appraised at $80,000 is purchased by issuing 1,000 shares of $20 par value common stock. The market price ofthe shares at the time of the exchange, based on active trading in the securities market, is $95 per share. Shouldthe land be recorded at $20,000, $80,000, or $95,000? Explain.
If Dakota company issues 1500 shares of six dollar par common stock for $75,000, which of the following would be true? A) Common stock will be credited for 75,000 B) Paid in capital in excess of power will be credited for 9000 C) Paid in capital in excess of power will be credited for 66,000 D) Cash will be debited for 66,000
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On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land. A few months ago, the land was appraised by an independent appraiser at ₱5,000,000. The land had an initial cost of ₱4,500,000. LILAC is currently trading at the stock exchange at ₱300. How much should be credited to Share Premium upon the issuance of the shares? Choose answer, either a or b. Show solution in good accounting form. a.) ₱ - 0 - b. ) ₱ 2,000,000
Suppose you own 2,000 common shares of Laurence Incorporated. The EPSis $10.00, the DPS is $3.00, and the stock sells for $80 per share. Laurenceannounces a 2-for-1 split. Immediately after the split, how many shareswill you have, what will the adjusted EPS and DPS be, and what would youexpect the stock price to be?
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Hi, If a company has 32,000 common stock shares outstanding $10 par value, then purchases 2,300 shares of treasury stock at $25 per share. How would this be jouralized? Also, after those transaction the same company declared a $0.10 per share cash dividend on the common stock outstanding. How would this be jouralized?
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Why do you deduct or subtract 1 to flotation cost? Example: Given; Annual dividend (D) = $4.75 Flotation cost (F) = 0.05 or 5% Number of shares issued (N) = 10,000 Stock price (P0) = $50 Formula; Total value able to receive = N * P0 * (1 - F) Total value able to receive = 10,000 * $50 * (1 - 0.05) Total value able to receive = $500,000 * 0.95 Total value able to receive = $475,000

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For how much will you debit land for if land's asking price is $510,000, land's selling price is $490,000 and you issued 5,000 shares of common stocks in Oxchange for the land. stock selling price is $2/share and selling price is $100/sh.