Question

CA15-2 (Issuance of Stock for Land) Martin Corporation is planning to issue 3,000 shares of its own $10 par value common stock for two acres of land to be used as a building site. Instructions (a) What general rule should be applied to determine the amount at which the land should be recorded

Answer 1

Answer:

The general rule that should be applied in determining the value on which the and should be recorded is

Explanation:

Stock is being issued for land not for cash so the fair value of stock or the fair value of land whichever is more determinable will be recorded as the value of the land.