Twenty-five thousand shares reacquired by Pierce Corporation for $48 per share were exchanged for undeveloped land that

Question:

Twenty-five thousand shares reacquired by Pierce for $48 per share were exchanged for undeveloped land that has an appraised value of $1,700,000. At the time of the exchange, the was trading at $60 per share on an organized exchange.
Instructions
(a) Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method.
(b) Briefly identify the possible alternatives (including those that are totally unacceptable) for quantifying the cost of the land and briefly support your choice.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...