What amount must the land be recorded


A Company acquired land in exchange for 5,000 shares of its $10 par common stock. The fair market value of the land is $63,000, it is appraised at $60,000 and the stock is widely traded and was selling for $12.50 per share when exchanged for the land. At what amount should the land be recorded by A Company?

a. $50,000

b. $62,500

c. $63,000

d. $60,000

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Accounting Basics: What amount must the land be recorded
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