EXERCISE 15-6 - ............................... 36,000 Note...

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EXERCISE 15-6 (25–30 minutes) (a) Cash [(5,000 X $45) – $7,000]. .................................... 218,000 Common Stock (5,000 X $10). ............................ 50,000 Paid-in Capital in Excess of Par. ........................ 168,000 (b) Land (1,000 X $46). ...................................................... 46,000 Common Stock (1,000 X $10). ............................ 10,000 Paid-in Capital in Excess of Par ($46,000 – $10,000).
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Unformatted text preview: ............................... 36,000 Note : The fair value of the stock ($46,000) is used to value the exchange because it is a more objective measure than the appraised value of the land ($50,000). (c) Treasury Stock (500 X $44). ....................................... 22,000 Cash. ..................................................................... 22,000...
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