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

question 182

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 sold 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

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Definitions:

Materials Price Variance

A measure of the difference between the actual cost of materials and the standard cost, multiplied by the actual quantity of materials used.

January

January is the first month of the year in the Gregorian and Julian calendars, characterized by cold weather in the northern hemisphere and warm weather in the southern hemisphere.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.

September

The ninth month of the year in the Gregorian calendar.