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Below are transactions related to Indigo Company.

$($a$)$ The City of Pebble Beach gives the company $5$ acres of land as a plant site. The fair value of this land is determined to be $$90,720.$

$($b$)15,680$ ordinary shares with a par value of $$50$ per share are issued in exchange for land and buildings. The property has been appraised at a fair value of $$907,200,$ of which $$201,600$ has been allocated to land and $$705,600$ to buildings. The shares of Indigo Company is not listed on any exchange, but a block of $100$ shares was sold by a shareholder $12$ months ago at $$65$ per share, and a block of $200$ shares was sold by another shareholder $18$ months ago at $$58$ per share.

$($c$)$ No entry has been made to remove from the accounts for Materials, Direct Labor, and Overhead the amounts properly chargeable to plant asset accounts for machinery constructed during the year. The following information is given relative to costs of the machinery constructed.

Materials used

Factory supplies used

Direct labor incurred

Additional overhead $($over regular$)$ caused by construction of machinery, excluding factory supplies used

Fixed overhead rate applied to regular manufacturing operations

Cost of similar machinery if it had been purchased from outside suppliers

$$14,000$

$1,040$

$17,920$

$2,960$

$60\%$ of direct labor cost

$49,280$

Prepare journal entries on the books of Indigo Company to record these transactions. $($Credit account titles are automatically

indented when amount is entered. Do not indent manuallv. If no entrv is reauired. select $"$No Entrv" for the account titles and

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