6) Please show all workings, let the answers be concise.

Problem 6 (6%) The following book and fair values were available for Vivian Company at the date of the merger. Book Value Fair Value $ 500,000 400,000 1,000,000 Inventory Land Building In-process research and development 0 Accounts payable $550,000 600,000 1,500,000 $50,000 (100,000) (100,000) Sandy Company issues 100,000 shares of its $5 par common stock (fair value of $29 per share) for all of Vivian's common stock in a merger, after which Vivian will cease to exist as a separate entity. Stock issue costs amount to $50,000 and Sandy pays $40,000 for legal fees to complete the transaction. Required: Prepare all the entries necessary on the date of the merger. Enter your answer on this page