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Determine the amount at which the land should be recorded

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Reference no: EM132698484

MC Corporation is planning to issue 30,000 shares of its own P10 par value common stock for two acres of land to be used as a building site.

Instructions:

Question (a) What general rule should be applied to determine the amount at which the land should be recorded?

Question (b) Under what circumstances should this transaction be recorded at the fair value of the land?

Question (c) Under what circumstances should this transaction be recorded at the fair value of the stock issued?

Question (d) Assume MC intentionally records this transaction at an amount greater than the fair value of the land and the stock. Discuss this situation

Reference no: EM132698484

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