=+At the annual stockholders’ meeting on April 2, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $2,550,000. The plan provided

(a) that a building, valued at $1,200,000, and the land on which it is located, valued at $300,000, be acquired in accordance with preliminary negotiations by the issuance of 45,000 shares of common stock,

(b) that 15,000 shares of the unissued preferred stock be issued through an underwriter, and

(c) that the corporation borrow $500,000. The plan was approved by the stockholders and accomplished by the following transactions:

June 6. Issued 45,000 shares of common stock in exchange for land and a building, according to the plan.