Question: 1. Carey Company is a publicly held corporation whose $10 par value stock is currently trading at $20 per share. The company issued 3,000 shares of stock to acquire land recently listed for sale at $45,000. Carey Company will record the Land at:
$60,000
$45,000
$30,000
Not enough information is given to determine the cost of the land.
2. SciWorks Corporation exchanges a piece of land for 600 shares of Fighter Corporation's $30 par common stock. The stock is not actively traded but had a fair value 6 months ago of $45 per share. The land had cost SciWorks Corporation $10,000 5 years ago and has a current fair value of $29,000. Fighter Co. should record the Land at:
$10,000
$18,000
$27,000
$29,000
3. PureTide Co. purchased land by issuing 80,000 shares of $4.00 par common stock in exchange for the land. The land was listed for sale at $500,000. The seller had purchased the land for $425,000 two years ago. The common stock was selling for $6.00 per share the day before the purchase of the land. HighTide should record the land at:
$320,000
$425,000
$480,000
$500,000
4. Shelby Incorporated decided to exchange 10,000 shares of $2.00 par common stock in exchange for legal services. The shares had a fair market value of $5 per share. The journal entry to record this event would include a:
Credit of $50,000 to the Common Stock account.
Credit of $50,000 to the cash account.
Debit to Legal Expenses for $30,000.
Debit to Legal Expenses for $50,000.