E15-3(Stock Issued for Land) Twenty-five thousand shares reacquired by Elixir Corporation for $53 per share were exchanged for undeveloped land that has an appraised value of $1,700,000. At the time of the exchange the common stock was trading at $62 per share on an organized exchange.;Instructions;a.;Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method.;b.;Briefly identify the possible alternatives (including those that are totally unacceptable) for quantifying the cost of the land and briefly support your choice.
Paper#81927 | Written in 18-Jul-2015Price : $22