(11). On October 26, 2020, Tree Top Co. issued 5,000 common shares for land. On this date, the land had a fair value of $290,000. The asking price of the land was $300,000. Tree Top debited land and credited common shares by $300,000. What is the impact to Tree Top's balance sheet? A. Both the land and common shares are overstated by $10,000. B. Both the land and common shares are understated by $10,000. C. No impact as there is no error. D. Only the common shares are overstated by $10,000. The land is recorded correctly. #11 Answer: (12). Presented below is information related to Madrid Corporation: Subscriptions Receivable, Common Shares $ 120,000 Common Shares 3,000,000 Common Shares Subscribed 240,000 Retained Earnings 900,000 The total amount that will be added to the Common Shares account when the final subscriptions receivable is collected will be: A. $120,000 B. Cannot be determined from the information given C. $360,000 D. $240,000