Question: On July 1 2011 Salas Inc a new corporation issued

On July 1, 2011, Salas Inc., a new corporation, issued 40,000 shares of its common stock to finance a corporate headquarters building. The building has a fair market value of $1,200,000 and a book value of $800,000. Because Salas is a new corporation, it is not possible to establish a market value for its common stock. Record the issuance of stock for the building, assuming the following conditions:
(1) The par value of the stock is $10 per share,
(2) The stock is no-par stock,
(3) The stock has a stated value of $4 per share.

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  • CreatedSeptember 10, 2014
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