Johnson Company Purchased Land for $70,000

question 118

True/False

Johnson Company purchased land for $70,000.The president of Johnson Company believes that the land is actually worth $75,000.The land can be recorded at $75,000.

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Definitions:

Stock-option Backdating

The practice of altering the date of granting stock options to a date when the stock price was lower, to provide a favorable exercise price for the recipient.

Securities Fraud

Deceptive practices in the stock or commodities markets that induce investors to make purchase or sale decisions based on false information, frequently resulting in losses, in violation of securities laws.

Felony

A serious crime, such as murder, rape, or robbery, that is punishable by imprisonment for more than one year or by death.

Imprisonment

The state of being confined in prison as a form of punishment for committing a crime.