4110-1.4

Pagle Corporation established a subsidiary to enter into a new line of business considered to be substantially more risky than Pagle's current business. Pagle transferred the following assets and accounts payable to Sand Corporation in exchange for 5,000 shares of $10 par value stock of Sand Cash Accounts Receivable Inventory Land Buildings & Equipment Accounts Payable Cost 30,000 45,000 60,000 20,000 300,000 10,000 Book Value 30,000 40,000 60,000 20,000 260,000 10,000