On May 5, 2017, Miami Corp.exchanged 5,000 of its common shares for a copyright owned by Lauderdale Ltd.At this date, Miami's common shares were quoted at $28 per share, and the copyright had a carrying value of $130,000 on Lauderdale's books.Miami should record the copyright at
A)$110,000.
B)$120,000.
C)$130,000.
D)$140,000.

Question

Quizplus · Accepted Answer

Miami should record the copyright at the fair value of the shares exchanged, which is 5,000 shares x $28 per share = $140,000.