On October 1 . Azuma, Inc exchanged 8,000 shares of its $25 par value common stock for a parcel of land to be held for a future plant site.Azuma's common stock had a fair market value of $80 per share on the exchange date. Azuma received $36,000 from the sale of scrap when an existing building on the site was razed. The land should be carried at
a. $200,000.
b. $236,000.
c. $604,000.
d. $640,000.
C
You might also like to view...
To maximize the benefits of a sponsorship effort, company leaders should define the primary goals of the program
Indicate whether the statement is true or false
On January 1, Year 4, Jones Realty Company issued 8 percent term bonds with a face amount of $1 million due January 1, Year 14 . Interest is payable semi-annually on January 1 and July 1 . On the date of issue, investors were willing to accept an effective interest rate of 6 percent. Assume the bonds were issued on January 1, Year 4 . for $1,148,959 . Using the effective interest amortization
method, Jones Realty Company recorded interest expense for the six months ended June 30, Year 4, in the amount of a. $40,000 b. $80,000 c. $68,938 d. $34,469 e. none of the above
The decision-making step in which the group comes to agreement on the nature of the problem is called
A) identify the problem. B) analyze the cause. C) search for alternative solutions. D) clarify the problem.
On the maturity date, _____.?
A. ?the maturity value of the debt is to be repaid B. ?the first installment of the installment loan is due C. ?the interest payment is due D. ?the market interest rate rises above the coupon rate E. ?the market price of the bond rises above the face value of the debt