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Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive’s books for $40,000. Required: 1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations: a. The preferred stock is currently selling for $110 per share. No appraisal is available on the land. b. The land is appraised at $65,000. There have been no recent sales of the preferred stock. c. The preferred stock is currently selling for $125 per share. The land is appraised at $64,000.

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Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive’s books for $40,000.
Required:
1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations:
a. The preferred stock is currently selling for $110 per share. No appraisal is available on the land.
b. The land is appraised at $65,000. There have been no recent sales of the preferred stock.
c. The preferred stock is currently selling for $125 per share. The land is appraised at $64,000.
   
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