Mirror Corp

question 10

Essay

Mirror Corp.has agreed to expand its operations by opening a manufacturing plant in Burns, Texas.In return, Burns will donate an abandoned building and the 5 acres on which it sits to Mirror.The land originally cost $1, 000, 000 and the building $3, 000, 000.The building's current book value is $380, 000, and current appraisals are: land $6, 000, 000 and building $2, 600, 000.Mirror has also agreed to provide 100 jobs for the next 5 years to Burns' city residents.Mirror estimates that the wages to these residents will amount to $4, 000, 000.
Required:
Prepare the journal entry to record this acquisition on Mirror's books.

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Definitions:

Vagus Nerve

The vagus nerve is the tenth cranial nerve and is involved in controlling the heart, digestive tract, and respiratory rate, among other functions.

Glossopharyngeal Nerve

A cranial nerve that manages taste and other functions in the tongue and throat.

Paralysis

The loss of the ability to move and sometimes to feel anything in part or most of the body, typically as a result of illness, injury, or poison.

Facial Nerve

The seventh cranial nerve that controls the muscles of facial expression.