4 If stock is issued for an asset other than cash, the asset should be recorded on the books of the corporation at the:OA book value of the asset.O B. par value of the stock.OC. current market value of the asset.O D. fair market value of the stock minus the par value of the stock.MacBook Airesc888F1F2F3F4F5F6!@#324%&12QWRYtab< cO

The company has the option to issue the stock for purchasing the assets. In that case, that case the…

Answered: If stock is issued for an asset other…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in...

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Treasury stock is listed as a(n) __________ on the balance sheet. (a) current liability (b) current asset (c) deduction from stockholders equity (d) addition to stockholders equity
Par value of a stock refers to the ________. A. issue price of a stock B. value assigned by the incorporation documents C. maximum selling price of a stock D. dividend to be paid by the corporation
Stock can be issued for all except which of the following? A. accounts payable B. state income tax payments C. property such as a delivery truck D. services provided to the corporation such as legal fees
Treasury Stock A corporation sometimes engages in treasury stock transactions. Required: 1. Define treasury stock. 2. Why would a corporation acquire treasury stock? 3. Briefly explain the cost method of accounting for the requisition and reissuance of treasury stock. Assume the treasury stock is common stock and has a par value. 4. Briefly explain the balance sheet presentation of treasury stock under this method.
If stock is issued for an asset other than cash the asset should be recorded on the books of the corporation at the -book value of the asset -par value of the stock -current market value of the asset -fair market value of the stock minus the apt value of the stock
What is a Capital Asset?, Holding Period, Calculation of Gain or Loss, Net Capital Losses (LO 4.1, 4.2, 4.3, 4.5) Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019: Stock DatePurchased Date Sold SalesPrice CostBasis 4,000 shares Green Co. 06/04/08 08/05/19 $12,000 $3,000 500 shares Gold Co. 02/12/19 09/05/19 54,000 62,000 5,000 shares Blue Co. 02/04/09 10/08/19 18,000 22,000 100 shares Orange Co. 11/15/18 07/12/19 19,000 18,000 None of the stock is qualified small business stock. The stock basis was reported to the IRS. Calculate Charu's net capital gain or loss using Schedule D and Form 8949.
Use the following information on a company’s investments in equity securities to answer questions 1- 2 below. The company’s accounting year ends December 31. Investment Date of acquisition Cost Fair value 12/31/16 Date sold Selling price Ajax Company stock 6/20/16 $40,000 $35,000 2/10/17 $32,000 Bril Corporation stock 5/1/16 20,000 N/A 11/15/16 26,000 Coy Company stock 8/2/16 16,000 16,500 1/17/17 23,000 1. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2016 income statement? 2. If the above investments are categorized as trading securities, what amount is reported for gain or loss on securities, on the 2017 income statement?
A stock's par value refers to the: O A. Value assigned per share by the corporate charter. O B. Market value of the stock on the date of the financial statements. OC. Maximum selling price of the stock.O D. Issue price of the stock.
The total amount of cash and other assets received by a corporation from the stockholders in exchange for the shares is __________Required to answer. Single choice. a. referred to as paid-in capital b. always below its stated value c. referred to as retained earnings d. always equal to par value
A corporation is authorized to issue 10000 p 100 par value stocks. If the law prescribe that 25% of the authorized is to be subscribe and 25% of the subscribe should be paid up. A. How much should be subscribed B. How much should be paid up
Lexington Co. has the following securities outstanding on December 31, 2020 (its first year of operations). Cost Fair Value Greenspan Corp. stock $20,000 $19,000 Summerset Company stock 9,500 8,800 Tinkers Company stock 20,000 20,600 $49,500 $48,400 During 2021, Summerset Company stock was sold for $9,200, the difference between the $9,200 and the “fair value” of $8,800 being recorded as a “Gain on Sale of Investments.” The market price of the stock on December 31, 2021, was Greenspan Corp. stock $19,900; Tinkers Company stock $20,500. Instructions a. What justification is there for valuing equity securities at fair value and reporting the unrealized gain or loss as part of net income? b. How should Lexington Co. report this information in its financial statements at December 31, 2020? Explain. c. Did Lexington Co. properly account for the sale of the Summerset Company stock? Explain. d. Are there any additional entries necessary for…
Paul Company presented the following information pertaining to its investments in equity securities. FVPL FVOCICost P1,000,000 P1,000,000Market value December 31, 2020 1,050,000 980,000 December 31, 2019 950,000 920,000 2.What amount should Paul report as unrealized gains/losses in the shareholders' equity of its December 31, 2020 statement of financial position?

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If stock is issued for an asset other than cash, the asset should be recorded on the books of the corporation at the OA book value of the asset. O B. par value of the stock. OC. current market value of the asset. O D. fair market value of the stock minus the par value of the stock.