WN:

Cost of the land and building is calculated as follows:

The appraised value of the land is $150000

The appriased value of the building is $250000.

Cost of Land =$150000/$400000*(25000*12)

                     =$112500

Cost of building =$250000/$400000*(25000*12)

                         =$187500

The following is the Journal Entry to record these

                                In the Books Of Harris Corporation

                                           Journal Entry

SNno                  Account Title                                               Dr Amount                     Cr Amount

1                         land                                                              $112500

                           Buidling                                                        $187500

                           To Common Stock (25000 Shares $1 par)                                             $25000

                           To Additional Paid in Capital on common                                            $275000

                            stock

                             (25000 shares *$11)

                       to record the investment in Land and Building