When a plant asset is acquired by the issuance of common stock and the fair value of the plant asset isnot clearly determinable, the cost of the plant asset is properly measured by theOstated value of the stock.O market price of the stock.O book value of the stock.O par value of the stock.

Plant assets are those assets which are being acquired by the business for longer period of time.…

Answered: When a plant asset is acquired by the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Which of the following results in an increase in the Equity in the Investee Income acct. when applying the equity method? Amortizations of purchase price over book value on date of purchase Amortization since date of purchase of purchase price over book value on date of purchase Sale of portion of the investment at a gain to the investor Investors share of gross profit from intra-entity inventory sale for the prior year Sale of a portion of the investment at a loss
None
Which of the following costs of a business combination can be included in the value charged to paid-in-capital in excess of par? direct and indiırect acquisition costs O direct acquisition costs direct acquisition costs and stock issue costs if stock is issued as consideration stock issue costs if stock is issued as consideration
What is reflected in the additional paid-in capital account?Required to answer. Single choice. a. Whichever is higher of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired b. Whichever is lower of (1) the difference between the market price and the par value when the stock was issued and (2) the difference between the market price and the par value when the stock was reacquired c. The difference between the market price and the par value when the stock was reacquired d. None of the above e. The difference between the market price and the par value when the stock was issued.
At the date of declaration, all are true about a property dividend except: O A property dividend results in a reduction to Additional Paid-In Capital. O A property dividend results in a reduction to Retained Earnings O A property dividend results in a reduction of Total Stockholders' Equity O A property dividend can generate a gain or loss based on the property's relative fair value and book value. Which of the following is true about direct costs companies incur to sell stock? O All of these answers are correct. O These costs include underwriting costs. O They are accounted for as a reduction to additional paid-in capital. O They do not meet the definition of an expense.
When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the: par value of the stock stated value of the stock book value of the stock market value of the stock
What investment is eligible to be held within a RRIF? • a) shares of a privately owned corporation O b) gold bars • c) commodity futures contracts O d) real estate
The pre-emptive right of a common stockholder is the right to?
If an investor sells an ordinary share at a price above that which he or she originally paid, the investor is said to have earnedSelect one: a.a capital expenditure. b.a capital gain. c.an originating point. d.a dividend. explain well all point of question.

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When a plant asset is acquired by the issuance of common stock and the fair value of the plant asset is not clearly determinable, the cost of the plant asset is properly measured by the O stated value of the stock. O market price of the stock. O book value of the stock. O par value of the stock.