Question
Firm ABC exchanged 2,000 shares of its common stock for equipment. There is no readily available estimate of the stock's fair value. The fair value
Firm ABC exchanged 2,000 shares of its common stock for equipment. There is no readily available estimate of the stock's fair value. The fair value of the equipment is $80,000.
The journal entry to record this transaction includes:
| a. | Credit to Stock Revenue in the amount of $80,000 | |
| b. | Debit to Equipment in the amount of $80,000 | |
| c. | Debit to Common Stock in the amount of $80,000 | |
| d. | Credit to Equipment in the amount of $80,000 |
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Managerial Accounting For Undergraduates
Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.
1st Edition
1618531123, 9781618531124
