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.
| 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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