Answer:
XX date. Acquisition of land in exchange for treasury stock.
Dr Land $1,550,000
Cr Treasury Stock $1,325,000
Cr Paid in Capital $225,000
Explanation:
Since the corporation uses the cost method, the transaction is recorded at purchase value regardless of current stock price.
treasury stock = 25,000 x $53 = $1,325,000
paid in capital = ($62 - $53) x 25,000 = $225,000
cost of the land = $1,325,000 + $225,000 = $1,550,000
