Question
X Company issued 10,000 shares of $10 par value common stock for an equipment, in various circumstances. Required: Record the journal entry under the following
X Company issued 10,000 shares of $10 par value common stock for an equipment, in various circumstances.
Required: Record the journal entry under the following assumptions:
Assumption (1): X cannot readily determine the fair value of equipment, but it know the fair market value of stock is $110000 (Fair market value per share is $11).
Assumption (2): X cannot readily determine the fair value of equipment, but it know the fair market value of stock is $80000 (Fair market value per share is $8).
Assumption (3): X cannot readily determine the fair value of the stock nor the fair market value of the equipment. An independent consultant values the equipment at $200000.
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
17th edition
007802577X, 978-0078025778
