Lester Company transferred the following assets to a newly created subsidiary, Mumby Corporation, in exchange for 40,000 shares of its $3 par value stock:

Required
a. Give the journal entry in which Lester recorded the transfer of assets to Mumby Corporation.
b. Give the journal entry in which Mumby recorded the receipt of assets and issuance of common stock toLester.

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Cost Book Value Cash Accounts Recelvabla nventory Land Buildings Equipment 75,000 50,000 35,000 160,000 240,000 40,000 $40,000 68,000 50,000 35,000 125,000 180,000