Tab Corporation decided to establish Collon Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Collon issued Tab 30,000 shares of $6 par value common stock. The following information is provided on the assets and accounts payable transferred:

Required
a. Give the journal entry that Tab recorded for the transfer of assets and accounts payable to Collon.
b. Give the journal entry that Collon recorded for the receipt of assets and accounts payable fromTab.

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Cost Book Value Fair Value Cash Inventory Land Buildings Equipment Accounts Payable 45,000 25,000 25,000 70,000 60,000 170,000 130,000 90,000 25,000 70,000 90,000 240,000 105,000 45,000 70,000 60,000 80,000 45,000