5)Sonny has the following account balances as of January 1, 2018 before an acquisition transaction takes place.

Inventory	$100,000
Land	400,000
Buildings (net)	500,000
Common stock	600,000
Additional paid in capital	200,000
Retained Earnings	200,000
Revenues	450,000
Expenses	250,000

The fair value of Sonny' Land and Buildings are $200,000 and $300,000, respectively. On January 1, 2018, Phillip Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Sonny' common stock. Phillip paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Phillip has $700,000 in its common stock account and $300,000 in its additional paid-in capital account.

On January 1, 2018, what value is assigned to Phillip's investment account? A. $150,000. B. $300,000. C. $750,000. D. $760,000. E. $1,350,000.

6)Acquired in-process research and development is considered as A. an indefinite-lived asset subject to testing for impairment.

B. a definite-lived asset subject to testing for impairment.

C. an indefinite-lived asset subject to amortization.

D. a definite-lived asset subject to amortization.

E. a research and development expense at the date of acquisition.

7) Sonny has the following account balances as of January 1, 2018 before an acquisition transaction takes place.

Inventory	$100,000
Land	400,000
Buildings (net)	500,000
Common stock	600,000
Additional paid in capital	200,000
Retained Earnings	200,000
Revenues	450,000
Expenses	250,000

The fair value of Sonny' Land and Buildings are $200,000 and $300,000, respectively. On January 1, 2018, Phillip Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Sonny' common stock. Phillip paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Phillip has $700,000 in its common stock account and $300,000 in its additional paid-in capital account.

Immediately after the acquisition, what is the consolidated additional paid in capital? A. $500,000. B. $740,000. C. $750,000. D. $760,000. E. $940,000.