On October 1,Azuma,Inc

question 32

Multiple Choice

On October 1,Azuma,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.Azuma's common stock had a fair market value of $80 per share on the exchange date.Azuma 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.