Total acquisition cost reported by PR (the debit to Investment on PR’s books) is

a.    \($50,000\)

b.    \($50,200\)

c.  \($50,400\)

d.  \($50,600 \)

PR Company pays \($10,000\) in cash and issues stock with a fair value of \($40,000\) to acquire all of SX Corporation’s stock. SX will be a subsidiary of PR. Balance sheet accounts just prior to the acquisition are as follows, in trial balance format:

PR’s consultants find these items that are not reported on \($X’s\) balance sheet:

Outside consultants are paid \($200\) in cash, and registration fees to issue PR’s new stock are \($400.\)

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Dr (Cr) Dr (Cr) Current assets Property, plant & equipment, net. Identifiable intangible assets Current liabilities. $ 14,000 $ 2,000 PR Company Book value SX Corporation Book value Fair value Dr (Cr) $ 4,200 - 22 110,000 800 10,000 6,000 4,000 14,000 (13,000) (1,600) (2,000) Long-term debt (60,000) (12,000) (11,600) Capital stock (44,400) (5,000) Retained earnings (8,000) (8,000) Accumulated other comprehensive income. -(200) 1,000 Treasury stock 800 9,600 Total.. 0 0