a. A company's offer to purchase land for $8,000 cash two years ago was rejected. Instead, the company acquires the land by issuing 1,000 shares of $1 par common stock (fair value of the stock is $7.80 per share based on serveral recent large transactions under normal and active stock trading volume).

b. A company issues 1,000 shares of $40 par common stock for land. The fair value was $60 per share at the time of the land purchase (the stocks sells regularly with an average daily volume of 5,000 shares). The seller had earlier offered to sell the land for $59,000 cash. Independent value the land at $61,000.

Required:

1. Please determine the cost used for recording the land acquired in each case.

2. Please record the journal entry for each case on the date of the land's acquisition.