Instructions Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive's books for $40,000. Required: 1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations: a. The preferred stock is currently selling for $120 per share. No appraisal is available on the land. b. The land is appraised at $60,000. There have been no recent sales of the preferred stock. c. The preferred stock is currently selling for $135 per share. The land is appraised at $69,000 2. Next Level For Requirement 1(c), discuss why you chose the value used in the journal entry
Instructions Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive's books for $40,000. Required: 1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations: a. The preferred stock is currently selling for $120 per share. No appraisal is available on the land. b. The land is appraised at $60,000. There have been no recent sales of the preferred stock. c. The preferred stock is currently selling for $135 per share. The land is appraised at $69,000 2. Next Level For Requirement 1(c), discuss why you chose the value used in the journal entry
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 1MC
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