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Calculating the Cost of a Building

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Janel Co acquired a building valued at $120,000 for property tax purpose in exchange for$8,000 shares of its 5 par common stock. The stock is selling for $15 per share. At what amount should the building be recorded by Janel Co.?

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Solution Summary

The solutions shows how is the value of the building determined when fair value is different than cost

Solution provided by:
Manal Elkhoshkhany, MBA
Education
  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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