The Putt Company issues 500 shares of $100 preferred stock for land. This land was carried on the seller’s books for $40,000.

Required
1. Prepare the journal entry to record the acquisition of the land for each of the following independent situations:
a. The preferred stock is currently selling for $120 per share. No appraisal is available on the land.
b. The land is appraised at $65,000. There have been no recent sales of the preferred stock.
c. The preferred stock is currently selling for $125 per share. The land is appraised at $64,000.
2. For Requirement 1(c), discuss why you chose the value used in the journal entry.