Answer:
Sr. No Particulars Debit Credit
Land $ 65000
Profit & Loss Account $ 25,000
Corporation Stock $ 80,000
Cash $ 10,000
Explanation:
Recording of purchase of land for stock of $ 80,000 and cash $ 10,000 . As the value of land is $ 65,000 the loss is debited to the profit and loss account. the stock is recorded at the fair market value on the date.
