Tiger Company was established on January 1, 2018. Along with other assets, it immediately purchased land for $100,000, and a building $120,000. On January 1, 2021, Tiger transferred these assets, cash of $35,000, and inventory costing $45,000 to a newly created subsidiary, Lion Company, in exchange for 30,000 shares of Lion’s $4 par value stock. Tiger 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 Tiger recorded for the transfer of assets and liabilities to Lion

b. Give the journal entry that Lion recorded for the receipt of assets and liabilities from Tiger