Are you sure it is 5,000 shares * 50 per share? The question does not say that the company used the cash from the selling of treasury stock to buy the land but it merely exchanged treasury stock with the land, so the treasury stock had a cost of 40 per share. Isn't it 5,000*40? Maybe I'm totally wrong.

Taxygood, if possible, it would be good to provide the correct answer below the questions.That way, all doubts about what is correct or wrong are alleviated. :)

yes, the $9,000 proceeds from selling scrap of the building that used to be on the land where the new building is goes to the land account, as a deduction from the acquisition price.

plus, it involves exchanging of treasury shares. I agree with answer which jrupa gave above....

Per my understanding, this is the way we would approach in this question :-

You got it.  Since the value of the land is not stated in the question, you book the land at the FMV of the shares given up for the land.  which is:

500k * 50 - 9000 (scrap sold)