Consider each situation for Kathy, Inc. below independently. Kathy, Inc. issued 10,000 shares of its $25 par common stock (current fair value of common is $35 per share) for a large tract of land. The land was appraised at $400,000.
Kathy already had 500,000 shares of common stock outstanding.
Kathy, Inc. issued 2,000 shares of $10 par Class A common stock at $12 and 100 shares of no-par Class B common stock at $20.

Required:
a. At what amount should land be recorded?
b. What is the total amount that should be recorded for additional paid-in capital from the second situation?