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A Corporation Issued 5,000 $10 Par Value Ordinary Shares in Exchange

Question 103

Multiple Choice

A corporation issued 5,000 $10 par value ordinary shares in exchange for some land with a market value of $60,000. The entry to record this exchange is:


A) Debit Land $60,000; credit Share Capital-Ordinary $50,000; credit Share Premium-Ordinary $10,000.
B) Debit Land $60,000; credit Share Capital-Ordinary $60,000.
C) Debit Land $50,000; credit Share Capital-Ordinary $50,000.
D) Debit Share Capital-Ordinary $50,000; debit Share Premium-Ordinary $10,000; credit Land $60,000.
E) Debit Share Capital-Ordinary $60,000; credit Land $60,000.

Correct Answer:

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