A Corporation Issued 5,000 Shares of $10 Par Value Common

question 107

Multiple Choice

A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $60,000.The entry to record this exchange is:

• A)
• \[\begin{array} { | l | c | c | }
• \hline \text { Land } & 60,000 & \\
• \hline \text { Common Stock } & & 50,000 \\
• \hline \begin{array} { l }
• \text { Contributed Capital in Excess of Par Value } \\
• \text { Common Stock }
• \end{array} & & 10,000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | c | c | c | }
• \hline \text { Land } & 60,000 & \\
• \hline \text { Common Stock } & & 60,000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | c | c | }
• \hline \text { Land } & 50,000 & \\
• \hline \text { Common Stock } & & 50,000 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | l | l | l | }
• \hline \text { Common Stock } & 50,000 & \\
• \hline \begin{array} { l }
• \text { Contributed Capital in Excess of Par Value } \\
• \text { Common Stock }
• \end{array} & 10,000 & \\
• \hline \text { Land } & & 60,000 \\
• \hline
• \end{array}\]
• E)
• \[\begin{array} { | c | c | c | }
• \hline \text { Common Stock } & 60,000 & \\
• \hline \text { Land } & & 60,000 \\
• \hline
• \end{array}\]

Know how to estimate values and interpret coefficients in regression analysis.

Understand the method of least squares for fitting regression lines to data.

Learn the definitions and roles of dependent and independent variables in regression analysis.

Comprehend the concept of unbiased estimators in the context of regression parameters.

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Definitions:

GAAP Definition

Generally Accepted Accounting Principles; a standard framework of guidelines for financial accounting used in any given jurisdiction, generally known for ensuring consistency and transparency.

Nonreciprocal Transaction

Transactions where one party transfers resources or obligations without directly receiving anything of approximately equal value in exchange.

Unconditional Promises

Commitments made by an entity that do not depend on future events or conditions for their execution.