Entry for acquisition of property

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Valdilla's Music Store acquired Land and old buildling 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:

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? For how much?

Please provide details of solution.

Reference no: EM1343965

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