Question

Kansas Company acquired a building valued at $162,000 for property tax purposes in exchange for 12,000 shares of its $3 par common stock. The stock is widely traded and selling for $19 per share. At what amount should the building be recorded by Kansas Company?

Answer 1

$228,000

Step-by-step explanation:

Value of the building

= Market price of the shares x Number of shares exchanged

= 12000x$19

=$228,000