Panther Corporation decided to establish Snake Company as a wholly owned subsidiary by transferring some of its existing assets and liabilities to the new entity. In exchange, Snake issued 100,000 shares of $2 par value common stock. The following information is provided on the assets and liabilities transferred: Cost Book Value
Cash $50,000 $50,000
Accounts Receivable 80,000 75,000
Patent 70,000 70,000
Building & Equipment 200,000 140,000
Land 60,000 60,000
Accounts Payable 20,000 20,000 Required: a. Give the journal entry that Panther recorded for the transfer
of assets and liabilities to Snake. b. Give the journal entry that Snake recorded for the receipt of assets and liabilities from Panther