Pablo Company incurred the following expenses to consummate the purchase of a subsidiary:

a. $30,000 paid to a legal firm to structure and record the transaction.

b. $35,000 preacquisition audit of subsidiary company accounts prior to purchase to determine purchase price.

c. $10,000 paid to American Appraisal Company to determine fair values of assets acquired.

d. $20,000 paid to All States Investment Company to issue common stock used as consideration to pay for subsidiary.

e. Pablo Company’s controller has allocated $56,000 of Pablo payroll costs to the purchase.

How would Pablo account for each of the above costs?

AppendixLO1