Consider each situation for Kathy, Inc. below independently.
Kathy, Inc. issued 10,000 shares of its $25 par common stock (current fair value of common is $35 per share) for a large tract of land.
The land was appraised at $400,000. Kathy already had 500,000 shares of common stock outstanding.
Kathy, Inc. issued 2,000 shares of $10 par Class A common stock at $12 and 100 shares of no-par Class B common stock at $20.
Required:
a.At what amount should land be recorded?
b.What is the total amount that should be recorded for additional paid-in capital from the second situation?

Question

Consider each situation for Kathy, Inc. below independently. 
Kathy, Inc. issued 10,000 shares of its $25 par common stock (current fair value of common is $35 per share) for a large tract of land. 
The land was appraised at $400,000. Kathy already had 500,000 shares of common stock outstanding.
Kathy, Inc. issued 2,000 shares of $10 par Class A common stock at $12 and 100 shares of no-par Class B common stock at $20.
Required: 
a.At what amount should land be recorded?
b.What is the total amount that should be recorded for additional paid-in capital from the second situation?

Quizplus · Accepted Answer

The Answer of Consider each situation for Kathy, Inc. below independently. 
Kathy, Inc. issued 10,000 shares of its $25 par common stock (current fair value of common is $35 per share) for a large tract of land. 
The land was appraised at $400,000. Kathy already had 500,000 shares of common stock outstanding.
Kathy, Inc. issued 2,000 shares of $10 par Class A common stock at $12 and 100 shares of no-par Class B common stock at $20.
Required: 
a.At what amount should land be recorded?
b.What is the total amount that should be recorded for additional paid-in capital from the second situation?

Consider Each Situation for Kathy, Inc