Research the accounting issue and formulize your findings in a formal research memo. The formal memo should be in good form with proper grammar, conveying the results of your research.

As typical during business growth periods, Taylor Company was short of cash while sensing the need to expand its operating capacity. The only solution seemed to borrow in order to fund needed expansion. Given the cash shortage, it would be challenging to find a bank to finance the expansion. Jenny Taylor, the president of Taylor Company, was playing golf and mentioned her concern to her golf partner Terri Jennings. Terri conveyed that she happened to be looking for a buyer for some land and a building on that land. After further conversations, the two agreed to exchange the land and building for 100,000 shares of stock in Taylor Company.

As typical during business growth periods, Taylor Company was short of cash while sensing the need to expand its operating capacity. The only solution seemed to borrow in order to fund needed expansion. Given the cash shortage, it would be challenging to find a bank to finance the expansion. Jenny Taylor, the president of Taylor Company, was playing golf and mentioned her concern to her golf partner Terri Jennings. Terri conveyed that she happened to be looking for a buyer for some land and a building on that land. After further conversations, the two agreed to exchange the land and building for 100,000 shares of stock in Taylor Company. Prior to the exchange, Terri had an $850,000 offer for the land and building but rejected the offer because she believed it was too low and didnt reflect market value. Both Jenny and Terri think a reasonable market price for the land and building today is $900,000. The last time Taylor Company issued stock was three years ago for $6 per share. Jenny has come to you to research how to account for this transaction for Taylor Company. Because Taylor Company is a privately-held company, Jenny does not believe that the exchange needs to be recorded at fair-value. Please don't copy and paste from others.