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.

Question

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The Answer of 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.