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1. On February 1, 2011, the Xilon Corporation issued 5,000 shares of its nopar common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $18 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2011, at a cost of $600,000. Xilon paid $400,000 in cash and the remainder was paid by the city of Monrovia.
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Prepare the journal entries to record the acquisition of the land and the building.
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