? Acme's appraisal of Coyote's fair values deemed three accounts to

be undervalued: Inventory by $$5,000,$ ?Land by $$20,000,$ ?and

Buildings by $$30,000.$ ?Acme plans to maintain Coyote's separate

legal identity and to operate Coyote as a wholly owned subsidiary.

Prepare Acme's journal entries to record its acquisition of

Coyote, related professional fees paid, and stock acquisition costs.

Journal entry for investment in Coyote

Investment

Long$-$term liabilities

Common Stock

Additional paid $-$ ?in capital

Journal entry for payment of professional

Professional Fees

Cash

Journal entry to record payment of stock

Additional paid$-$in capital

Cash Separately determine each individual amount that Acme would

report in its consolidated balance sheet following the acquisition of

Coyote. Include in Acme's retained earnings any adjustments to

income accounts from Part $1.$On January $1,20$X$4,$ ?Acme Corporation acquired $100\%$ ?of the outstanding common stock of Coyote, a foreign company $($amounts translated to USD$).$ ?To acquire these shares,

Acme issued to the owners of Coyote $$200,000$ ?in long$-$term liabilities and $20,000$ ?shares of common stock having a par value of $$1$ ?per share but a fair value of $$20$ ?per share.

Acme paid $$30,000$ ?to accountants, lawyers, and brokers for assistance in the acquisition and another $$12,000$ ?in connection with stock issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows:

Create journal entries identifying consolidations and investments.