Bluesy Company purchased land with a current market value of $240,000 . Its book value in the accounts of the seller was $130,500 . In exchange for the land, Bluesy issued 20,000 shares of its common stock, par $10, with an estimated market value of $14 per share. Bluesy stock is not traded on an established stock exchange. What amount should Bluesy record as the cost of the land?
a. $130,500
b. $200,000
c. $240,000
d. $280,000
C
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