Kansas company acquired a building valued at $165,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. the stock is widely traded and selling for $18 per share. at what amount should the building be recorded by kansas company?

$216,000

Explanation:

Given:

Value of the building = $165,000

Stocks exchanged = 12,000 shares

Selling price of the share = $18 per share

Now,

The amount that should be recorded by Kansas Company will be fair market price of the share

Therefore,

The amount building should be recorded

= Stocks exchanged × Selling price of the share

= 12,000 × $18

= $216,000

you're crazy if you think that someone is going to write a 500 word report for you.

answer; balance sheets;