Value common stock currently trading

Reference no: EM13123840

A company acquires land by issuing 10,000 shares of its $10 par value common stock currently trading at $20 per share and the appraised value of the land is $250,000. We would record the land by:

a. Using its appraised value of $250,000 and recognize a gain of $50,000 since we are issuing stock only currently worth $200,000.

b. Record the land at the value of the consideration given up, $200,000.

c. Record the land at the average of its appraised value of $250,000 and the $200,000 value of the stock issued, thereby recognizing a $25,000 gain.

d. Record the land at the par value of the stock given up, $100,000.

Reference no: EM13123840

Questions Cloud

Illustrate what would be the estimated cost of equity : Currently, the cost of equity, rs, is 11.5% as determined by the CAPM. Illustrate what would be the estimated cost of equity if the firm used 60% debt?

Calculate confidence interval for average overhaul : A sample of 49 repairs showed an average overhaul of 285 hours with a standard deviation of 50 hours. Calculate a 95% confidence interval for the average overhaul.

Finding the tangent to curve : Find the condition that the curve y = mx + c to be a tangent to the parabola y^2 = 4 ax and also determine the point of contact.

Create testable null statistical hypothesis : Generate a testable null statistical hypothesis and an alternative statistical hypothesis. Select an alpha level of .05, .01, or .001 and justify your choice.

Value common stock currently trading : A company acquires land by issuing 10,000 shares of its $10 par value common stock currently trading at $20 per share and the appraised value of the land is $250,000. We would record the land by:

Equations of lines through point : What is the equation of the vertical line through P? What is the equation of the horizontal line through P?

Give a rationale with your response : Create a situation or scenario in which it may be appropriate to recognize revenue as the productive activity takes place. State whether or not there are any other times appropriate for recognizing revenue. Give a rationale with your response.

Explain how much taxable compensation is the equivalent : Explain how much taxable compensation is the equivalent of $7,500 of exempt compensation for each of the three classes of employees?

Omegas charitable contributions deduction : What is Omega's charitable contributions deduction for the current year and its charitable contributions carryover to next year, if any?

User Account

All Pages