Below are transactions related to Duffner Company;
(a) The City of Pebble Beach gives the company 5 acres of land as a plant site. The fair value of this landis determined to be $81,000.
(b) 13,000 shares of common stock with a par value of $50 per share are issued in exchange for land andbuildings. The property has been appraised at a fair value of $810,000, of which $180,000 has beenallocated to land and $630,000 to buildings. The stock of Duffner Company is not listed on any exchange,but a block of 100 shares was sold by a stockholder 12 months ago at $65 per share, and ablock of 200 shares was sold by another stockholder 18 months ago at $58 per share.
(c) No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead theamounts properly chargeable to plant asset accounts for machinery constructed during the year.The following information is given relative to costs of the machinery constructed.
Prepare journal entries on the books of Duffner Company to record these transactions.
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