Paris Corporation is a publicly held corporation whose shares, issued at $ 1 per share are actively traded at $ 20 per share. The company issued 1,000 shares to acquire land recently appraised at $ 15,000. When recording this transaction, Paris will
A) debit Land for $ 15,000.
B) credit Common Shares for $ 20,000.
C) debit Land for $ 20,000.
D) credit Gain on Purchase of Land for $ 5,000.

Question

Quizplus · Accepted Answer

Paris Corporation should record the land at its fair market value of $15,000, which is the appraised value.

Paris Corporation Is a Publicly Held Corporation Whose Shares, Issued