Question

Kansas Company acquired a building valued at $152,000 for property tax purposes in exchange for 12,000 shares of its $6 par common stock. The stock is widely traded and selling for $17 per share. At what amount should the building be recorded by Kansas Company?

Answer 1

amount that the building be recorded by Kansas Company is $204000

Step-by-step explanation:

given data

acquired building = $152,000

exchange = 12,000 shares

common stock = $6

selling = $17 per share

to find out

amount should the building be recorded by Kansas Company

solution

we get here building valued that is at fair market price of share is express as

building valued record = 12,000 shares × $17 per share

building valued record = $204000

so amount that the building be recorded by Kansas Company is $204000