Eagle Corporation established a subsidiary to enter into a new line of business considered to be substantially more risky than Eagles current business. Eagle transferred

Eagle Corporation established a subsidiary to enter into a new line of business considered to be substantially more risky than Eagle’s current business. Eagle transferred the following assets and accounts payable to Sand Corporation in exchange for 5,000 shares of $10 par value stock of Sand:

Required
a. Give the journal entry that Eagle recorded for the transfer of assets and accounts payable to Sand.
b. Give the journal entry that Sand recorded for receipt of the assets and accounts payable fromEagle.

Cost Book Value S30,000 30,000 45,000 40,000 60,000 60,000 20,000 20,000 Buildings & Equipment 300,000 260,000 10,000 Cash Accounts Receivable Inventory Land Accounts Payable 10,000