Current Attempt in Progress

As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients.

Ayayai Corporation is a closely held corporation whose stock is not publicly traded. On December $5,$ the corporation acquired

land by issuing $4,000$ shares of its $$20$ par value common stock. The owners' asking price for the land was $$96,000,$ and the

fair value of the land was $$88,000.$

Whispering Winds Corporation is a publicly held corporation whose common stock is traded on the securities markets. On

June $1,$ it acquired land by issuing $16,000$ shares of its $$10$ par value stock. At the time of the exchange, the land was

advertised for sale at $$200,000.$ The stock was selling at $$11$ per share.