3)Which of the following statements is true regarding a statutory consolidation? A. A statutory consolidation is no longer a legal option. B. Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company. C. The acquired company dissolves as a separate corporation and becomes a division of the acquiring company. D. The acquiring company acquires the stock of the acquired company as an investment. E. The original companies dissolve while remaining as separate divisions of a newly created company.

4)On January 17, 2018, Planet Company issues 40,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Silkway' common stock. Planet paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Planet has $700,000 in its common stock account and $300,000 in its additional paid-in capital account.

What will be Planet's balance in its common stock account as a result of this acquisition?

A. $400,000. B. $1,090,000. C. $1,100,000. D. $1,290,000. E. $1,300,000.