Kansas Company Acquired a Building Valued at $210,000 for Property

question 215

Multiple Choice

Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Kansas Company?

• A) $60,000
• B) $180,000
• C) $210,000
• D) $120,000

---

Definitions:

Green Shoe Pricing

A term NO.

Yield Burning

The practice of financial intermediaries marking up the prices on bonds to reduce the yield, often in the context of municipal bond refinancing.

Underpricing

The practice of setting the initial offering price of a security, typically a stock, below its market value.

Public Issue

The offering of shares by a company to the public for the first time to raise capital.