Scenario A 

Crayoli Inc. is a publicly traded company. During the year, one of the bigger investors contributed land that was purchased by the investor for $800,000 in exchange for 40,000 common shares. The land was recently appraised at $1.5million. Crayoli’s common shares are currently trading for $38 per share. They have had an average share price of $36 per share over the past year.
Scenario B 

Witsand Inc. is a small company that is listed on the Toronto Venture Stock Exchange (TSX.V), and reports in accordance with IFRS. During the year, Putilo Ltd. contributed equipment in exchange for a 20% ownership interest in Witsand. The equipment that was contributed was purchased 5 years ago for $2 million. The carrying amount of the equipment in Putilo’s books was $1,350,000. Comparable equipment (same age and condition) was recently quoted at $1,325,000. Witsand currently has 400,000
shares outstanding and issued Putilo new shares. Witsand’s shares are currently trading for $13.75 per share.
Scenario C

Teal Ltd. is a public company listed on the TSX. Teal recently accepted a donation of a historic building from one of its founding shareholders. The building has a fair value of $3.8 million. Teal’s shares are currently trading for $55 per share. No shares were issued in exchange for the building.

Required:
Prepare a discussion of the accounting requirements for each scenario from the perspective of the company issuing the common shares. Then, where appropriate, prepare the required journal entries.