1. On 12/31, Choco acquired all assets and liabilities of Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share and this combination is a statutory merger (Cake was dissolved). Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding

	Choco Book Values	Cake Book Values	Cake Fair Values
Cash and Receivable	350,000	180,000	170,000
Inventories	250,000	100,000	150,000
Land	700,000	120,000	240,000
Building and equipment	600,000	600,000	900,000
Patented technology	100,000	0	60,000
Accounts Payable	300,000	120,000	150,000
Long-term debt	0	400,000	350,000
Common Stock	750,000	300,000
Additional paid in capital	500,000	60,000
Retained earnings 12/31	450,000	120,000
Revenues	350,000	160,000
Expenses	310,000	130,000

Q1. How much is the consideration transferred?

Q2. What is the consolidated balance for Land?

Q3. What is the consolidated balance for Accounts payable?

Q4. Prepare fair value allocation and goodwill schedule at the date of the acquisition.