On July 1, 2011, Salas Inc., a new corporation, issued 40,000 shares of its common stock to

Question:

On July 1, 2011, Salas Inc., a new corporation, issued 40,000 shares of its to finance a corporate headquarters building. The building has a fair market value of $1,200,000 and a book value of $800,000. Because Salas is a new corporation, it is not possible to establish a market value for its . Record the issuance of stock for the building, assuming the following conditions:

(1) The of the stock is $10 per share,

(2) The stock is no-par stock,

(3) The stock has a stated value of $4 per share.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...