What the land and common stock should be recorded at

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Problem 1: If 1,000 shares of $10 par-value common stock are issued in exchange for land with a fair market value of $25,000, the land and common stock (along with any additional paid-in capital) should be recorded at:

A. $0

B. $1,000

C. $10,000

D. $25,000

Problem 2: Dividends omitted on preferred shares that must be paid before common shareholders are entitled to be paid are referred to as:

A. Participating

B. Callable

C. Cumulative

D. In arrears

Reference no: EM132756554

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