On November 1, 2016, the Cranberry Construction Company declared a property dividend payable in the form of
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Question:
On November 1, 2016, the Cranberry Construction Company declared a property dividend payable in the form of bonds held for long-term investment purposes. The bonds will be distributed to the common stockholders on December 15, 2016. The bonds to be distributed to the common stockholders originally cost Cranberry $210,000. Fair values of the bonds on various dates are as follows:
Dec 31, 2015 : 220,000
Nov 1, 2016 : 235,000
Dec 15, 2016 : 225,000
Which of the following amounts should be used to record the appropriate credit to Property Dividends Payable?
a. 210,000
b. 220,000
c. 235,000
d. 230,000
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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