Pester Company transferred the following assets to a newly created subsidiary, Shumby Corporation, in exchange for 40,000 shares of its $3 par value stock:

Required

a. Give the journal entry in which Pester recorded the transfer of assets to Shumby Corporation.

b. Give the journal entry in which Shumby recorded the receipt of assets and issuance of common stock to Pester.

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Cost Book Value