On January 1, Year 3, All Business Machines (ABM) Issued

question 1

Multiple Choice

On January 1, Year 3, All Business Machines (ABM) issued 1,000 shares of its common stock for a building.Real estate appraisers estimated the building to have a market value of $55,000 on the date of acquisition.The common stock of ABM sold for $50 per share on the date of the acquisition.On January 1, Year 3, ABM paid $650 in real estate transfer taxes, $500 in real estate legal fees for recording the transaction, $1,750 in property taxes for Year 3, and $2,000 for a two-year insurance policy beginning January 1, Year 3.At what amount should the building appear in the Building account of ABM on January 1, Year 3?

• A)$51,150
• B)$52,900
• C)$56,150
• D)$59,900
• E)$61,900

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Definitions:

Geographically Distributed

Pertaining to entities, individuals, or systems that are spread out across different geographic locations.

Social Comparison

Social comparison is the process by which individuals evaluate their own opinions and abilities by comparing themselves to others, to assess their worth or status.

Implicit Influence

Refers to the subtle or indirect impact that affects individuals' attitudes, beliefs, or behaviors without their conscious awareness.

Conversion Theory

A psychological theory suggesting that minority groups can influence the majority through consistency and confidence in their viewpoints.