Acquisition Of Land And Building For Stock And Cash Valdilla S Music Store Acquired 2324256

Acquisition of Land and Building for Stock and Cash

Valdilla’s Music Store acquired land and an old building in exchange for 50,000 shares of its common stock, par $0.50, and cash of $80,000. The auditor ascertains that the company’s stock was selling for $15 per share when the purchase was made. The following additional costs were incurred to complete the transaction:

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Type of Paper

When is it due?

How many pages is this assigment?

Legal cost to complete transaction

$10,000

Property tax for previous year

30,000

Cost of building demolition

21,000

Salvage value of demolished building

(6,000)

What entry should be made to record the acquisition of the property?