Respuesta :
Answer:
The amount at which the building is recorded in the books is $180,000
Explanation:
The amount on which the building is to be reported in the books of the Company is as:
Value of the building = Market price of the shares x Number of shares exchanged
where
Market price of the shares is $15
Number of shares exchanged = 12,000
Putting the values above:
= $15 x 12,000
= $180,000
Note: The amount would be $180,000 because it is in exchange of the shares is purchased. So, in order to nil the shares the, this value is recorded not $210,000.
Value of the building = Market price of the shares x Number of shares exchanged = $15 x 12,000 = $180,000
