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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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ra1l [238]

Answer:

Supplier dependence

Explanation:

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It is very risky for an entity to depend on a particular source for input. This reverse order of an entity depending on the supplier for business strategy instead of the supplier depending on the entity is not a good business practice.

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3 0
3 years ago
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Marina CMI [18]

Answer:

See below

Explanation:

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An auditor ensures the reports and records are well examined in an organization.  He or she verify the assets and liabilities.

<u>Help a company build a positive image in the media-</u><u> Public relation specialist.</u>

Public relations help in building trust and creating awareness about the organization.

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6 0
3 years ago
On January 1, 2013, M. Johanson Company purchased equipment for $36,000. The company is depreciating the equipment at the rate o
andreyandreev [35.5K]

Answer:

C)$30,000

Explanation:

Since the assets will depreciate including the acquisition month, the depreciation will be calculated as $500x12= $6000 . So the Book Value will be $36000 -$6000 = $30000

3 0
3 years ago
If the consumer price index changes from 125 in september to 150 in october, what is the rate of inflation?.
nexus9112 [7]
The rate of inflation is 20%.
In September price is = 125 
And in October  price = 150
rate of inflation = (150 -125)/125 x 100 
= 25/125 x 100
=0.2 x 100 = 20% 
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Mila [183]
<span>This statement is true as in the old times, the North ans South were proslavery because they feel that they will be liberated from the "low, menial" jobs like factory labor and domestic service performed by wage laborers in the north. It was the only plausible explanation for the North by guaranteeing equality for whites. Also, they believed that without slavery, the whites would never achieve their civilized pursuit due to these menial jobs.</span>
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