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assume that abc’s land and buildings had a book value of $1,000,000 and fair value of $1,200,000. what is the value of lands and buildings reported on the consolidated balance sheet after acquisition? a. $1,600,000 b. $1,800,000 c. $1,900,000 d. 2,100,000

Respuesta :

Credit to Additional Paid-in Capital is $1,800,000

What is additional paid in capital ?

As the name suggests, additional paid-in capital solely refers to the sum paid beyond the par value of shares of stock issued during an initial public offering (IPO). In the SE area of the balance sheet, both of these items are listed next to one another.

  • Additional paid-in capital, as used in accounting, is the worth of a company's shares over the price at which they were initially issued. Both regular and preferred shares are subject to this. For illustration, a business might price its shares at $1 each. Investors might be ready to pay $2 per share to invest in the business, though.

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