Twenty-five thousand shares reacquired by elixir

Reference no: EM13388365

Twenty-five thousand shares reacquired by Elixir Corporation for $53 per share were exchanged for undeveloped land that has an appraised value of $1,700,000. At the time of the exchange the common stock was trading at $62 per share on an organized exchange.

Instructions

a. Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method.

b. Briefly identify the possible alternatives (including those that are totally unacceptable) for quantifying the cost of the land and briefly support your choice.

Reference no: EM13388365

Questions Cloud

Firm sells its product in the perfectly competitive market : firm sells its product in a perfectly competitive market where other firms charge a price of 80 per unit. the firms

Brown corporation has 1000 shares of common stock : brown corporation has 1000 shares of common stock outstanding. bob owns 300 of the shares bobs mother owns 300 shares

If dynamo wishes to change its capital structure from 75 : mampm proposition 1 dynamo corp. produces annual cash flows of 150 and is expected to exist forever. the company is

Discuss employment issues facing the public relations field : nbsp1 nbsp nbsp nbspdiscuss the importance of image to an organization.nbsp2 nbsp nbsp nbspdiscuss employment issues

Twenty-five thousand shares reacquired by elixir : twenty-five thousand shares reacquired by elixir corporation for 53 per share were exchanged for undeveloped land that

Allowance method analysis of receivables at a january 20x2 : allowance method analysis of receivables. at a january 20x2 meeting the presinotdent of sonic sound directed the sales

Microeconomics and macroeconomics explain the differences : your son is graduating from high school and is about to enter the work force. he has developed a strong curiosity about

Under the weighted-average method of process costing costs : under the weighted-average method of process costing costs from the prior period are averaged with those of the

Calculate the financial ratios for the assigned companys : calculate the financial ratios for the assigned companys financial statements and then interpret those results against

User Account

All Pages