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Problem: Embossing Corporation issued 32,000 shares of its $1 par value common stock in exchange for land that had a fair market value of $200,000.
Prepare in journal form the entries necessary to record the issuance of the stock for the land under each of these conditions:
(1) The stock was selling for $7 per share on the day of the transaction;
(2) Management attempted to place a value on the common stock but could not do so.
Financial Statement Analysis and Preparation
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