User Account

All Pages

Calculate the cost of acquisition of the land

Assignment Help Accounting Basics
Reference no: EM132765668

Question: X Ltd, a listed company, acquired land from Y Ltd by issuing 100 000 new shares in the company to Y Ltd. X's shares were trading at $4.6 per share at the date of acquisition. $4000 legal costs were incurred for the issues of these new shares.

X Ltd also agreed to transfer 30 000 of the shares it holds in Z Ltd to Y Ltd. Z's shares were trading at $4.5 per share at the date of acquisition. These shares originally costed X Ltd $5 per share.

Required: Calculate the cost of acquisition of the land by X Ltd and prepare journal entries to record the acquisition.

Reference no: EM132765668

Questions Cloud

How much is swallow taxable income or nol : Assume instead that Swallow Corporation owns 26% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?
Calculate the cost of acquisition of the land : X Ltd also agreed to transfer 30 000 of the shares it holds in Z Ltd to Y Ltd. Z's shares were trading at $4.5 per share at the date of acquisition.
Compute the dividend received deduction for loon corporation : Compute the dividends received deduction for Loon Corporation. Compute the dividends received deduction for Crane Corporation.
What would be the total catering supplies : The company expected its activity in October to be 20 jobs and 216 meals, but actual activity was 19 jobs and 235 meals. What would be total catering supplies
Calculate the cost of acquisition of the land : X Ltd, a listed company, acquired land from Y Ltd by issuing 100 000 new shares in the company to Y Ltd. X's shares were trading at $4.6 per share at the date.
Determine cherry corporation deduction for organizational : Cherry Corporation, a calendar-year C corporation, Determine Cherry Corporation's deduction for organizational expenditures for the current year.
Compute the expected rate of return : Assume that West Corp shares returns required in the market by investors are a function of two economic factors: S1 is 0.04 and S2 is 0.01.
Find prance current income tax expense for the year : Find Prance's current income tax expense for the year. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation
Define what is the amount of cash that should be received : A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $900 added.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd