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    Exchange of assets: Acquired land by issuing stock

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    Acquired 175 acres of land by issuing 3,200 shares of common stock with par value of $1 and market value of $75.00. Market analysis reveal that the market value of the stock was a reasonable value for the land. How would I make the entry?

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    You would presume that the value of the land was the 3,200 x $75 = $240,000 since they told you the $75 was a reasonable value. Then, you record the "contribution" ...

    Solution Summary

    Reasoning and entry given for acquired land by issuing stock.