1.On July 6 Rommel Company acquired the plant assets of Studebaker Company, which had discontinued operations. The appraised value of the property is:

Land $400,000

Building 1,200,000

Machinery and equipment 800,000

Total $2,400,000

Rommel Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market value of $180 per share on the date of the purchase of the property.

Prepare entries on the books of Rommel Company for these transactions.