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On December 15, 19x5, FLM Corporation exchanged 2,000 shares of $10 par value common stock for land. The current market price of the stock was
On December 15, 19x5, FLM Corporation exchanged 2,000 shares of $10 par value common stock for land. The current market price of the stock was $20 per share. The value of the land was not readily determinable. Which of the following entries should be made to record the issuance of the stock?
A) Land 20,000
Common Stock 20,000
B) Land 40,000
Common Stock 40,000
C) Land 40,000
Common Stock 20,000
Paid-in Capital in Excess of Par Value 20,000
D) Cannot be determined.
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