Foundations Inc. follows ASPE and issues 15,000 shares on July 1 to acquire specially made machinery equipment.
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Question:
Foundations Inc. follows ASPE and issues 15,000 shares on July 1 to acquire specially made machinery equipment. The appraised value of the equipment is $112,000 and the fair value of the shares issued is $7.50 per share. Foundations shares are not widely traded. Foundations should record this transaction by
a) debiting Equipment for $112,000.
b) debiting Common Shares for $112,000.
c) debiting Equipment for $112,500.
d) debiting Common Shares for $112,500.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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