(Question 1). Flower Company was established on January 1, 2017. Along with other assets, it immediately purchased land for $100,000, and a building $210,000. On January 1, 2021, Flower transferred these assets, cash of $30,000, and inventory costing $50,000 to a newly created subsidiary, Sparrow Company, in exchange for 50,000 shares of Sparrows $4 par value stock. Flower uses straight line depreciation and useful life of 30 years for the building, with no estimated residual values.

Required: (a) Give the journal entry that Flower recorded for the transfer of assets and liabilities to Sparrow (25 points).

( b) Give the journal entry that Sparrow recorded for the receipt of assets and liabilities from Flower (25 points).