1 On 01 01 2020, Seth Co purchase all assets and liabilities of Lucy Co by paying $40,000 cash and 20,000 shares of its own newly issued stock with $10 per share market price Seth also paid $2000 cash for investment banking fee and $1,000 to issue the stock that is used as part of the purchase price Please use the acquisition method to consolidate Seth and Lucy Co on the date of acquisition, assuming that Lucy was DISSOLVED after the acquisition Acquisition method Debit Credit Cash Inventory Land Buildings (net) Equipment (net) Patent Goodwill Gain on bargain purchase Accounts payable Long term Debt Common stock Cash Common stock Cash Combination expense Cash

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1  On 01 01 2020, Seth Co  purchase all assets and liabilities of Lucy Co  by paying $40,000 cash and 20,000 shares of its own newly issued stock with $10 per share market price  Seth also paid $2000 cash for investment banking fee and $1,000 to issue the stock that is used as part of the purchase price  Please use the acquisition method to consolidate Seth and Lucy Co  on the date of acquisition, assuming that Lucy was DISSOLVED after the acquisition  Acquisition method Debit Credit Cash Inventory Land Buildings (net) Equipment (net) Patent Goodwill Gain on bargain purchase Accounts payable Long term Debt Common stock Cash Common stock Cash Combination expense Cash

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1. On 01/01/2020, Seth Co. purchase all assets and liabilities of Lucy Co. by paying $40,000 cash and 20,000 shares of its own newly issued

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1. On 01/01/2020, Seth Co. purchase all assets and liabilities of Lucy Co. by paying $40,000 cash and 20,000 shares of its own newly issued stock with $10 per share market price. Seth also paid $2000 cash for investment banking fee and $1,000 to issue the stock that is used as part of the purchase price. Please use the acquisition method to consolidate Seth and Lucy Co. on the date of acquisition, assuming that Lucy was DISSOLVED after the acquisition.
	Acquisition method
	Debit	Credit
Cash
Inventory
Land
Buildings (net)
Equipment (net)
Patent
Goodwill
Gain on bargain purchase
Accounts payable
Long-term Debt
Common stock
Cash

Common stock
Cash

Combination expense
Cash