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tigry1 [53]
3 years ago
6

Kansas Company acquired a building valued at $166,000 for property tax purposes in exchange for 10,000 shares of its $4 par comm

on stock. The stock is widely traded and sold for $20 per share. At what amount should the building be recorded by Kansas Company?
Business
1 answer:
Kay [80]3 years ago
6 0

Answer:

$200,000

Explanation:

Asset is recorded in the books on a value of the consideration paid at the time to acquire the asset. In this question the building is purchased by issuing $200,000 (10,000 shares x $20) value of shares.So, the building should be recorded at a value of $200,000 in the books.

The Journal Entry for the transaction is as follow:

Dr.  Building                                                                         $200,000

Cr.  Common Stock (10,000 x $4)                                      $40,000

Cr.  Add-in-Capital common stock ($200,000-$40,000) $160,000

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Answer:

C. skimming

Explanation:

Based on the information provided it is safe to say that by setting the price at $12,700 Xerox used a skimming pricing strategy. This is a pricing strategy in which the firm/company places their new product in the market with the highest price they can give it and go slowly lowering the price as time goes on. This is mostly done with brand new, one of a kind products that do not have competition, like the portable fax machine that Xerox designed.

3 0
3 years ago
Diversification is important in investing because...
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Explanation:

Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.

8 0
3 years ago
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A broker listed a $75,000 property and the agreement read that the owner would NOT take more than a 25% cash offer. The broker p
Mashutka [201]

Answer:

The correct answer is  - No,

Explanation:

The correct answer is  - No,

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Therefore the owner wouldn't consider the broker and didn't due broker commission.

8 0
3 years ago
It is believed that ______________ weaken the chemical bonds that constituent mineral grains, enabling them to act in more of a
Ghella [55]
When it comes to the deformation of rocks, it is believed that water weaken the chemical bonds that constituent mineral grains. Water forms a film around the mineral and weaken the bonds. This is why wet rocks tend to act in a more ductile manner. If a rock is dry, they tend to be more brittle.
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2. If the government decided to subsidize the production of a good, the result would be a decrease in the equilibrium price and
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Answer: True

Explanation:

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