Question

Fairchild Company acquired a building valued at $210,000 for property tax purposes in exchange for 6,000 shares of its $10 par common stock. The stock is widely traded and selling for $31 per share.
At what amount should the building be recorded by Fairchild Company?

a) $60,000 b) $150,000 c) $186,000 d) $210,000

Answer 1

Answer:

$ 186 000

Explanation:

The cost of the building = $210,000

the shares that was exchange for it was 6000 with selling price of $ 31 per share

the amount for the building that should be recorded by Fiarchild Company = 6000 × $ 31  = $ 186 000