Baden Corporation Is a Publicly Held Corporation Whose Shares, Issued

question 159

Multiple Choice

Baden Corporation is a publicly held corporation whose shares, issued at $1 per share are actively traded at $20 per share. The company issued 1,000 shares to acquire land recently appraised at $15,000. When recording this transaction, Baden will

• A) debit Land for $15,000.
• B) credit Common Shares for $20,000.
• C) debit Land for $20,000.
• D) credit Gain on Purchase of Land for $5,000.

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