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On November 1, 2010, the Metal Construction Company Declared a Property

Question 65

Multiple Choice

On November 1, 2010, the Metal Construction Company declared a property dividend payable in the form of bonds held for long-term investment purposes.The bonds will be distributed to the common stockholders on December 15, 2010.The bonds to be distributed to the common stockholders originally cost Metal $210, 000.Fair value of the bonds on various dates is as follows:  December 31,2009$220,000 November 1,2010225,000 December 15,2010230,000\begin{array}{ll}\text { December } 31,2009 & \$ 220,000 \\\text { November } 1,2010 & 225,000 \\\text { December } 15,2010 & 230,000\end{array}
Which one of the following amounts should be used to record the appropriate credit to Property Dividends Payable?


A) $210, 000
B) $220, 000
C) $225, 000
D) $230, 000

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