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Question - Airebil Company exchanged 3,500 shares of its no par value common stock for a parcel of land to be held as a future plant site. The book value of the shares is currently $80 per share, and their current market value is $95 per share. Airebil received $45,000 from the sale of scrap when an existing building on the property was removed from the site. Based on these facts, compute the land should be capitalized?
A. $287,500.
B. $325,000.
C. $235,000.
D. $377,500.
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