Pester Company transferred the following assets to a newly created subsidiary, Shumby Corporation, in exchange for $40,000$ shares of its $$3$ par value stock:

Cost Book Value

Cash $ $40,000$ $ $40,000$

Accounts Receivable $75,00068,000$

Inventory $50,00050,000$

Land $35,00035,000$

Buildings $160,000125,000$

Equipment $240,000180,000$

Required:

a$.$ and b$.$ Prepare the journal entry in which Pester recorded the transfer of assets to Shumby Corporation, and the entry in which Shumby recorded for the receipt of assets and issuance of common stock to Pester.