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nevsk [136]
3 years ago
5

Exchanged a land with an adjusted basis of 65,000 for 5,000 shares of corporation stock and 10,000 cash the corporation stock ha

d a fmv of 80,000 on the date
Social Studies
1 answer:
Hoochie [10]3 years ago
3 0

Answer:

Sr. No                Particulars                      Debit                    Credit

                  Land                                 $ 65000

              Profit & Loss Account           $ 25,000

             Corporation Stock                                                 $ 80,000

              Cash                                                                       $ 10,000

Explanation:

Recording of purchase of land for stock of $ 80,000 and cash $ 10,000 . As the  value of land is $ 65,000 the loss is debited to the profit and loss account. the stock is recorded at the fair market value on the date.

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