Jazz Company acquired land and paid for it in full by issuing $600,000 of its 10 percent bonds payable and 40,000 shares of its common stock, par $10. The stock was selling at $19 per share and the bonds were trading at 102. What amount should Jazz record as the cost of the land?
A) $988,000
B) $1,000,000
C) $1,372,000
D) $1,387,200

Question

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The Answer of Jazz Company acquired land and paid for it in full by issuing $600,000 of its 10 percent bonds payable and 40,000 shares of its common stock, par $10. The stock was selling at $19 per share and the bonds were trading at 102. What amount should Jazz record as the cost of the land?
A) $988,000
B) $1,000,000
C) $1,372,000
D) $1,387,200

Jazz Company Acquired Land and Paid for It in Full