On January 1, 202X, P Company transferred the following assets to a newly created subsidiary, S Corp., in exchange for 100,000 shares of S's $1 par common stock. P Company purchased the long-term assets five years ago and uses straight line depreciation with no residual value. Buildings and equipment original cost was $250,000 and $200,000, respectively. Their useful lives are 40 and 10 years. Accounts receivable is net of an allowance is $8,000 and is an appropriate balance based on the aging method. Inventory is carried at lower of cost or market and is presently valued at $50,000 on January 1, however, a lower-of-cost or market analysis indicated that it should be valued at $42,000. Cash Accounts Receivable Inventory Land Buildings Equipment Original Cost. Evaluations $40,000 82,000 ? 50,000 ? 35,000 ? 250,000 ? 200,000 ? Required: Prepare professional-grade journal entries required by both companies for the exchange.