On October 1, Takei, Inc

question 7

Multiple Choice

On October 1, Takei, Inc. exchanged 8,000 shares of its $25 par value common stock for a parcel of land to be held for a future plant site. Takei's common stock had a fair market value of $80 per share on the exchange date. Takei received $36,000 from the sale of scrap when an existing building on the site was razed. The land should be carried at

• A) $200,000.
• B) $236,000.
• C) $604,000.
• D) $640,000.

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Definitions:

Borrowed

The act of receiving something of value in exchange for the promise of returning it or its equivalent.

Amount Owed

The total sum of money that is due or owed to another party.

Date

A particular day of a month or year, often specified by a number.

Monthly Interest

Interest calculated or paid every month, often in context of loans or savings accounts, where the interest can be a source of income or a fee.