Value common stock held in treasury for a parcel of land


On December 1, Miser Corporation exchanged 3,000 shares of its $25 par value common stock held in treasury for a parcel of land to be held for a future plant site. The treasury shares were acquired by Miser at a cost of $40 per share, and on the exchange date the common shares of Miser had a fair value of $50 per share. Miser received $9,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at:

A) $111,000.

B) $150,000.

C) $141,000.

D) $120,000.

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Accounting Basics: Value common stock held in treasury for a parcel of land
Reference No:- TGS066939

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