E15-2 (Recording the Issuance of Common and Preferred Stock) Abernathy Corporation was organized on January 1, 2012. It is authorized to issue 10,000 shares of 8%, $50 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year. 10-Jan | Cash | 400,000 | | | Common Stock | | 160,000 | | Paid-in capital - Common Stock (excess) | | 240,000 | 1-Mar | Cash | 540,000 | | | Preferred Stock | | 250,000 | | Paid-in capital - Preferred Stock (excess) | | 290,000 | 1-Apr | Land | 80,000 | | | Common Stock | | 48,000 | | Paid-in capital - Common Stock (excess) | | 32,000 | 1-May | Cash | 560,000 | | | Common Stock | | 160,000 | | Paid-in capital - Common Stock (excess) | | 400,000 | 1-Aug | Organization expense | 50,000 | | | Common Stock | | 20,000 | | Paid-in capital - Preferred Stock (excess) | | 30,000 | 1-Sep | Cash | 90,000 | | | Common Stock | | 20,000 | | Paid-in capital - Common Stock (excess) | | 70,000 | 1-Nov | Cash | 112,000 | | | Preferred Stock | | 50,000 | | Paid-in capital - Preferred Stock (excess) | | 62,000 |

E15-3 (Stock Issued for Land)
Instructions
(a) Prepare the journal entry to record the acquisition of land assuming that the purchase of the stock was originally recorded using the cost method. Land | 1,500,000 | | Treasury Stock | | 1,200,000 | Paid-in Capital from treasury stock | | 300,000 |
(b) Briefly identify the possible alternatives (including those that are totally unacceptable) for