Problem:
Valdilla's Music Store acquired Land and old buildling in exchange for 50,000 shares of its common stock, par $0.50 and cash of $80,000.
The auditor ascertains that the company's stock was selling for $15 per share when the purchase was made. The following additional costs were incurred to complete the transaction:
Legal cost to complete transaction......$10,000
Property tax for previous year....................$30,000
Cost of building demolition................................$21,000
Salvage value of demolished building.........................(6,000)
What entry should be made to record the acquisition of the property? For how much?
Please provide details of solution.