On May 5, 2011, MacDougal Corp

question 37

Multiple Choice

On May 5, 2011, MacDougal Corp.exchanged 2,000 shares of its $25 par value treasury ordinary shares for a patent owned by Masset Co.The treasury shares were acquired in 2010 for $45,000.At May 5, 2011, MacDougal's ordinary shares was quoted at $34 per share, and the patent had a carrying value of $55,000 on Masset's books.MacDougal should record the patent at

• A)$45,000.
• B)$50,000.
• C)$55,000.
• D)$68,000.

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Definitions:

Fixed Interval

A specified period of time between events or actions, used in scheduling and monitoring activities.

Uncovered Interest Parity

An economic theory suggesting that the difference in interest rates between two countries will equal the expected change in exchange rates between their currencies.

Eurobonds

International bonds issued in a currency different from the currency of the country or market in which they are issued, allowing issuers to access capital outside their home markets.

International Bonds

Bonds issued in a country by a non-domestic entity, allowing the issuer to access foreign capital.