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    harini17's Avatar
    harini17 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 5, 2015, 08:06 AM
    Accounting and finance - can anyone help?
    On June 30, 2011, Cole Inc. exchanged 3,000 shares of Stone Corp. $30 par value common stock for a patent owned by Gore Co. The Stone stock was acquired in 2009 at a cost of $80,000. At the exchange date, Stone common stock had a fair value of $45 per share, and the patent had a net carrying value of $160,000 on Gore's books. Cole should record the patent at:


    • $80,000

    • $90,000

    • $135,000

    • $160,000
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    May 11, 2015, 06:32 PM
    Gore will record an investment of $135,000 which will be adjusted to market value at balance date

    Cole will record the acquisition at $135,000 the difference between acquisition cost and the price is a profit

    You need to learn to ignore extraneous information
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