Internal Expansion

Company Parent creates a subsidiary, Company Sub, and transfers the following assets to Sub in exchange for all 10,000 shares of Sub's $1 par common stock. The book values of assets at the time of transfer, net of depreciations, are stated below.

Item		Book Value
Cash		$60,000
Inventory		50,000
Land		80,000
Building		125,000
A/Depre		(30,000)
Equipment		260,000
A/Depre		(100,000) $445,000

Q1. What journal entry should Company Parent record to account for the transfer of assets to Sub?

Q2. What journal entry should Company Sub record to account for the receipt of assets and the issuance of stock?