On June 17, the Lattern Company issued 120,000 shares of its $0.10 par value common stock in exchange for land. On the date of the transaction, the fair value of the common stock, evidenced by its market price, was $10 per share. The journal entry to record this transaction includes:

Multiple Choice

• Debit: Land, $1,200,000.

• Credit: Cash, $1,200,000.

• Debit: Land, $12,000.

• No entry for this exchange.