Clay Township owned an idle parcel of real estate consisting of land and a factory. Clay gave title to this realty to Wolf Co. as an incentive for Wolf to establish a factory in the Township. Wolf paid nothing for this realty, which had a fair value of $200,000 at the date of the grant. In accordance with traditional practice, Wolf may record this nonmonetary transaction as a
Memo entry only.
Credit to retained earnings for $200,000.
Credit to other comprehensive income for $200,000.
Credit to a contributed capital account for $200,000.