When a Company Acquires Land by Issuing 10,000 of Its

question 61

True/False

When a company acquires land by issuing 10,000 of its common shares currently trading for $20 per share, the company must get an appraisal of the land and recognize a gain if the appraised value is more than the $200,000 value of the shares issued.

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Definitions:

Applicability

The relevance or suitability of a law, regulation, or principle in a specific context or situation.

Zoning Ordinance

Regulations set by local governments determining how land within their jurisdiction can be used, affecting the development and use of properties.

Occupancy

Occupancy refers to the use or inhabitance of a space, such as a building or land, typically governed by legal or contractual terms.

Apartments

Residential units within a building or complex, typically available for rent, that consists of living space including bedrooms, a kitchen, and a bathroom.