On January 1, Year 3, All Business Machines (ABM) Issued

Multiple Choice

On January 1, Year 3, All Business Machines (ABM) issued 1,000 shares of its common stock for a building.Real estate appraisers estimated the building to have a market value of $55,000 on the date of acquisition.The common stock of ABM sold for $50 per share on the date of the acquisition.On January 1, Year 3, ABM paid $650 in real estate transfer taxes, $500 in real estate legal fees for recording the transaction, $1,750 in property taxes for Year 3, and $2,000 for a two-year insurance policy beginning January 1, Year 3.At what amount should the building appear in the Building account of ABM on January 1, Year 3?

A) $51,150
B) $52,900
C) $56,150
D) $59,900
E) $61,900