XYZ Co. acquired land with fair value of P900,000 byissuing 10,000 shares with par value of P9 per shareand quoted price of P81 per share.1. What is the initial cost of land?a. P810,000P900,000b.c. P90,000d. P02. Assuming the fair value of the land is notdeterminable, what is the initial cost of land?Prepare the journal entry to record theacquisition of land.a.P810,000B.P900,000C.P90,000d. P03. Assuming both the fair value of the landand the shares are not determinable, what isthe initial cost of land? Prepare the journalentry to record the acquisition of land.*a.P810,000b.P900,000c.P90,000d.PO

The answers for the multiple choice questions and relevant explanation are presented hereunder :…

XYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 P900,000 b. c. P90,000

XYZ Co. acquired land with fair value of P900,000 by issuing 10,000 shares with par value of P9 per share and quoted price of P81 per share. 1. What is the initial cost of land? a. P810,000 P900,000 b. c. P90,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 38P

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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

XYZ Co. acquired land with fair value of P900,000 by
issuing 10,000 shares with par value of P9 per share
and quoted price of P81 per share.
1. What is the initial cost of land?
a. P810,000
P900,000
b.
c. P90,000
d. P0
2. Assuming the fair value of the land is not
determinable, what is the initial cost of land?
Prepare the journal entry to record the
acquisition of land.
a.P810,000
B.P900,000
C.P90,000
d. P0
3. Assuming both the fair value of the land
and the shares are not determinable, what is
the initial cost of land? Prepare the journal
entry to record the acquisition of land.*
a.P810,000
b.P900,000
c.P90,000
d.PO

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