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Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $35 per share and the
Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $35 per share and the buildings book value on the books of the seller was $224,000. Which of the following journal entries is correct for Smith Company when Smith issues 12,400 shares of $20 par value common stock and pays $22,400 cash in exchange for the building? Multiple Choice
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