27,000 shares reacquired by Cullumber Corporation for $51 per share were exchanged for undeveloped land that has an appraised value of $1,606,000. At the time of the exchange, the common stock was trading at $61 per share on an organized exchange.
(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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)