When a Closely Held Corporation Issues Preferred Shares for Land

question 3

Multiple Choice

When a closely held corporation issues preferred shares for land, the land should be recorded at the

• A) total value of the shares issued.
• B) total book value of the shares issued.
• C) total liquidating value of the shares issued.
• D) fair market value of the land.

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Definitions:

Island Arcs

Curved chains of volcanic islands that are usually situated along the edge of a tectonic plate, created by the subduction of an oceanic plate beneath another plate.

Island Arcs

Curved chains of volcanic islands that form along the boundaries of Earth's tectonic plates, generally over a subducting plate.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that encircles the globe and is the site of new oceanic crust formation.

Terranes

Geologically distinct regions that may have been brought together by past tectonic processes.