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On October 17, ORANGE Company issued 15,000 shares of its 100 par ordinary share in acquiring a land that has a fair value of 1,700,000

On October 17, ORANGE Company issued 15,000 shares of its 100 par ordinary share in acquiring a land that has a fair value of 1,700,000 during that date. The ordinary share is actively selling at 120 per share. On December 31, the land has a fair value of 2,100,000.

1.What is the amount of share premium to be credited on the issuance of shares?

A. 200,000

B. 600,000

C. 500,000

D. 300,000

2.At what amount should the Land be recorded in the books of Orange?

A. 1,700,000

B. 2,100,000

C. 1,500,000

D. 1,800,000

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