1,000 Shares of $30 Par Common Stock Was Exchanged for a Piece

question 66

Multiple Choice

1,000 shares of $30 par common stock was exchanged for a piece of land with a fair market value of $30,000. The journal entry to record the transaction would include a:

• A) credit to Land for $30,000.
• B) credit to Common Stock for $15,000.
• C) credit to Paid-In Capital in Excess of Par Value-Common for $15,000.
• D) debit to Land for $30,000.

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Definitions:

Slope

The rate at which the dependent variable changes with respect to an independent variable in a function or a graph.

Intercept

The point where a line or curve crosses an axis on a graph, often referring specifically to where it crosses the Y-axis.

Y-Intercept

The point where a line or curve intersects the Y-axis of a graph.

Linear Regression Equation

A mathematical expression that describes a straight-line relationship between two variables, typically one dependent and one independent variable.