Exercise 10-12 - value of the property is used as the basis...

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EXERCISE 10-12 (15–20 minutes) (a) Land . ................................................................................. 81,000 Contribution Revenue . ..................................... 81,000 (b) Land . ................................................................................. 180,000 Buildings . ........................................................................ 630,000 Common Stock ($50 X 13,000) . ..................... 650,000 Additional Paid-in Capital*. ............................. 160,000 *Since the market value of the stock is not determinable, the market
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Unformatted text preview: value of the property is used as the basis for recording the asset and issuance of the stock. (c) Machinery. ....................................................................... 40,100 Materials . .............................................................. 12,500 Direct Labor. ........................................................ 15,000 Factory Overhead . ............................................. 12,600* *Fixed overhead applied (60% X $15,000) $ 9,000 Additional overhead 2,700 Factory supplies used 900 $12,600...
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