100% $200,000 Harris Company outstanding voting shares acquired by Merrill Inc. Cash paid by Merrill to acquire shares Merrill Company's $10 par common stock issued for acquisition - number of shares Fair market value of Merrill stock at acquisition date Fees paid by Merrill for arranging acquisition Stock issuance costs paid by Merrill 15,000 SHS $18 $10,000 $6,000 Numbers below are before the purchase transaction: Cash Receivables Inventory Land Buildings (net) Equipment (net) Patent Accounts payable Long-term liabilities Common stock Retained earnings Merrill, Inc. Book Value $300,000 160,000 220,000 100,000 400,000 120,000 O (160,000) (380,000) (400,000) (360,000) Harris Company Book Fair Value Value $40,000 $40,000 90,000 80,000 130,000 130,000 60,000 60,000 110,000 140,000 50,000 50,000 0 30,000 (30,000) (30,000) (170,000) (150,000) (40,000) (240,000) 1. Prepare the journal entries to record the purchase of Harris on Merrill's books. 2. Prepare the consolidated worksheet on the date of acquisition. Note you will need to solve for the following balance sheet accounts for Merrill following the acquisition: a. Cash b. Investment in Harris C. Common Stock (PAR) d. Paid in Capital (amount > PAR) e. Retained Earnings