1. On January 1, 20X8, Alaska Corporation acquired Mercantile Corporation's net assets by paying 1000 shares stock, with market value of each share at $160 and par value at $1. Balance sheet data for the two companies and fair value information for Mercantile Corporation immediately before the business combination are given below:

	Alaska	Mercantile
	Book Value	Book Value	Fair Value
Cash	200,000	30,000	30,000
Account Receivable	40,000	22,000	22,000
Inventory	120,000	25,000	36,000
Patents	50,000	20,000	40,000
Buildings and equipment	330,000	250,000	150,000
Less: Accumulated Depreciation	(140,000)	(150,000)
Total assets	600,000	197,000	278,000
Accounts payable	85,000	55,000	55,000
Notes payable	100,000	80,000	80,000
Common Stock:
$5 par value	120,000
$2 par value		20,000
Additional paid-in capital	140,000	25,000
Retained earnings	155,000	17,000
Total liabilities and equities	600,000	197,000

What is the amount of Goodwill?

		47,000
		17,000
		37,000
		27,000

2. further assume that Alaska paid $5,000 of audit fees related to the issuance of stock, stock registration fees of $2,000, and stock listing application fees of $1,000 , making the total stock issuance cost at $8,000

What are the correct accounts and amounts Alaska should credit for this acquisition?

		Common Stock 1,000 APIC 151,000
		Common Stock 1,000 APIC 156,000
		Accounts Payable 55,000 Notes Payable 80,000 Common Stock 1,000 APIC 151,000
		Accounts Payable 55,000 Notes Payable 80,000 Common Stock 1,000 APIC 159,000
		Common Stock 1,000 APIC 159,000