Red Farms purchased a tractor for use in its operations from a company run owned by one of its alumnus.

The tractor has a market value of $140,000 but the seller sold it at cost at $100,000 to Cal Poly Farms because of their relationship.

Which of the following is the correct set of journal entries?

		Dr. Machinery $100,000 Cr. Cash $100,000
		Dr. Inventory $140,000 Cr. Cash $140,000
		Dr. Machinery $28,000 Cr. Deferred Revenue $28,000
		Dr. Machinery $100,000 Cr. Inventory $100,000