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On November 1, 2021, the company acquired a tract of land with an existing building in exchange for 10,000 shares of Penzema common stock that had a market price of $38 per share. Penzema paid legal fees and title insurance totaling $23,000. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2022 for $2,000,000.

On November 1, 2021, the company acquired a tract of land with an existing building in exchange for 10,000 shares of Penzema common stock that had a market price of $38 per share. Penzema paid legal fees and title insurance totaling $23,000. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2022 for $2,000,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On November 1, 2021, the company acquired a tract of land with an existing building in exchange for 10,000 shares of Penzema common stock that had a market price of $38 per share. Penzema paid legal fees and title insurance totaling $23,000. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2022 for $2,000,000.
Transcribed Image Text:On November 1, 2021, the company acquired a tract of land with an existing building in exchange for 10,000 shares of Penzema common stock that had a market price of $38 per share. Penzema paid legal fees and title insurance totaling $23,000. Shortly after acquisition, the building was razed at a cost of $35,000 in anticipation of new building construction in 2022 for $2,000,000.
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