In regard to the relevant hardware expansion, define an enab…

Questions

At its inceptiоn, Peаcоck Cоmpаny purchаsed land for $50,000 and a building for $220,000. After exactly 4 years, Peacock transferred these assets and cash of $75,000 to a newly created subsidiary, Selvick Company, in exchange for 25,000 shares of Selvick's $5 par value stock. Peacock uses straight-line depreciation. When purchased, the building had a useful life of 20 years with no expected salvage value. An appraisal at the time of the transfer revealed that the building has a fair value of $250,000. Based on the information provided, at the time of the transfer, Selvick Company should record: